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UNUM Announces 114% LTCI Rate Increase!

10/26/2015

Policyholders can eliminate the entire increase by reducing their future inflation increases.

UNUM announced its latest in-force premium increase on two of its LTC insurance blocks of business impacting policyholders in 21 states. (MO & IL have not yet approved this increase.)

The largest increase of 114% impacts people who have a 5% "Compound" automatic inflation increase benefit.
People with 5% "Simple" inflation (or equal increases) face a somewhat smaller increase of 83%.
The increase applies to policy series called "Advantage I" or Advantage Plus"
This will be the third in-force rate increase for some older UNUM policies.
The increase does NOT take effect until the next policy anniversary date which in many cases may be well into 2016.

Policyholders will be notified individually of their specific increase and state-approved options for reducing or eliminating the increase entirely. Policyholder letters should begin to arrive in early November.

Inflation option to avoid the increase:

Like any LTC insurance policy, the premium can be reduced by reducing benefits, for example, changing from a "Lifetime" benefit period to 6-years, or from 6-years to 3 years; policyholders can also reduce the amount of coverage per month.
UNUM is offering a special option with this increase:

If you reduce your FUTURE inflation percentage from 5% to 3% (for either Compound or Simple options), then there will be NO CHANGE to your premiums related to this increase.
All benefit increases earned to date under past 5% increases will remain in effect; the inflation rate change only impacts the increase of benefits going forward.

ComfortLTC recommends most policyholders should elect the reduced, 3% inflation option.

If your health is in decline and you may file a claim soon, you may want to consider accepting the full increase.
You are not affected if:

You are on claim.
You have a policy that is past its 10-pay, paid-up period.
Your state has not yet approved this increase.

There are state differences (a lower approved increase percentage, or increases spread out over three years). The states currently impacted are:

AK, AZ, CO, IA, KS, MI, NC, NJ, NV, NY, OH, OK, OR, SC, SD, TN, TX, UT, WI, WV, WY

Call your agent; or contact us for a personalized policy review and recommendation.

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Medicare Open Enrollment - Advice

10/12/2015

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It's time to review your Medicare coverage. Medicare's "open enrollment" starts October 15th and runs through December 7th for coverage in 2016. Officially called the Annual Election Period (AEP), this is the only time (with only a few special exceptions) you can make changes to your Medicare coverage.

Most people on Medicare will benefit from an annual Part D Prescription Drug Plan (PDP) review. Your prescriptions may have changed in the past year, and the way your current plan covers your drugs (the "formulary") may be changing for 2016.

If you have a traditional Medicare Supplement (Medigap) policy with Original Medicare benefits be VERY CAREFUL about replacing it with a Medicare Advantage (Part C) plan. While a Medicare Advantage plan may offer very low monthly premiums, your coverage options - especially the choice of doctors and hospitals - will be very limited compared to Original Medicare with a full-coverage Medigap policy.

During the AEP, you may:

Switch from Original Medicare to a Medicare Advantage plan.
Switch from a Medicare Advantage plan back to Original Medicare.
Switch from a Medicare Advantage plan to different Medicare Advantage plan.
Switch from a Medicare Advantage plan that doesn’t include drug coverage to one that does, and vice versa.
Join a Medicare prescription drug plan.
Switch from one Medicare prescription drug plan to another one.
Drop your Medicare prescription drug coverage.

REMEMBER: Medicare does NOT cover long-term care.

"Medicare and most health insurance plans, including Medicare Supplement Insurance (Medigap) policies, don't pay for [long-term] care, sometimes called "custodial care".
- "Medicare & You 2016", page 72, Centers for Medicare & Medicaid Services, US Dept. of Health & Human Services.

If you don't have LTC insurance, this is also an excellent time to consider all of your retirement health care plans.

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UNUM Announces 114% LTCI Rate Increase!

Policyholders can eliminate the entire increase by reducing their future inflation increases.

Inflation option to avoid the increase:

ComfortLTC recommends most policyholders should elect the reduced, 3% inflation option.

Medicare Open Enrollment - Advice

"Medicare and most health insurance plans, including Medicare Supplement Insurance (Medigap) policies, don't pay for [long-term] care, sometimes called "custodial care".
- "Medicare & You 2016", page 72, Centers for Medicare & Medicaid Services, US Dept. of Health & Human Services.

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UNUM Announces 114% LTCI Rate Increase!

Policyholders can eliminate the entire increase by reducing their future inflation increases.

Inflation option to avoid the increase:

ComfortLTC recommends most policyholders should elect the reduced, 3% inflation option.

Medicare Open Enrollment - Advice

"Medicare and most health insurance plans, including Medicare Supplement Insurance (Medigap) policies, don't pay for [long-term] care, sometimes called "custodial care".- "Medicare & You 2016", page 72, Centers for Medicare & Medicaid Services, US Dept. of Health & Human Services.

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"Medicare and most health insurance plans, including Medicare Supplement Insurance (Medigap) policies, don't pay for [long-term] care, sometimes called "custodial care".
- "Medicare & You 2016", page 72, Centers for Medicare & Medicaid Services, US Dept. of Health & Human Services.