Originally posted on Tue, August 16, 2016
Last week we met with a long-time client who retired from the federal government. Prior to retiring, she had the foresight to purchase the long term care insurance offered through the federal government (FLTCIP). However, she and (we) were shocked to find out about the most recent increase in this program’s costs – over 125%!!
In terms of the “sticker shock,” there will be an average increase to your monthly insurance premium of 83%, or $111, for those that opt not to change their coverage. John Hancock Life & Health recognizes that not all policyholders will be able to afford this change; therefore they have provided a personalized letter indicating the various options available to maintain the premium at the current level. Ultimately, this change will take effect on November 1, 2016 for affected policyholders, and there is a September 30th, 2016 deadline to review and choose your option.