Women May Soon Pay More for Long-Term Care Insurance

Long-term care insurance may soon be getting more expensive for women. That’s because two of the country’s biggest long-term care insurance providers have announced plans to introduce “gender-based” pricing.

womens long term care insurance

Genworth hasn’t said how much it will raise rates for women, but according to the American Association for Long-Term Care Insurance, women will likely end up paying 20 to 40 percent more than men.

Women not only tend to live longer than men, but they also file more insurance claims, and their claims are for longer periods. About two-thirds of all long-term care insurance payouts are made to women, according to the Association.

Genworth’s new rates won’t apply to existing policyholders or to married couples who apply for joint policy. (Insurance companies usually give married couples a discount on rates.)

Several other companies also have gender-specific pricing requests on file with state regulators, and some of them plan to charge more to a married woman who outlives her spouse.

The gender-based increases will be on top of recent rate hikes for long-term care insurance in general. Over the past five years, premiums have risen between 30 and 50 percent.

The Affordable Care Act requires gender-neutral pricing for health insurance, but it doesn’t apply to long-term care insurance. However, Colorado and Montana have specific laws requiring unisex insurance rates, so the long-term care rate changes presumably won’t take effect there.

Are you considering a policy and don’t know where to start? Contact Attorney Kristina Vickstrom today at 508-757-3800. She can start a conversation about the benefits of long-term care insurance, refer you to a reputable agent, and discuss other long-term care planning option that be of benefit to you.

Comments

  1. Women have a far greater chance of needing long term care and our studies reveal they account for around two-thirds of all new claims. So, in terms of LTC insurance, they have the greater need and get the most benefit.

    Unisex rates (equal costs for a single man or single woman) makes this an enormous value for women. This is very likely to change in 2013 (just part of the continued evolution of the industry),

    So, yes – both men and women need to have some type of plan for living a long life. But (for now) women — especially those living alone — should consider long term care insurance.

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