Prudential announced it will stop selling individual long term care (LTC) insurance policies at the end of March. Prudential ranked fifth in the LTC market. They will still sell group products.
In 2011 Prudential announced rate increases on its first and second generation individual LTC policies. The premium rate increase percentage requests were substantial: 18% or 32% on the first generation product, and 15% or 30% on the second generation. That higher tier of increases was on plans with a cash benefit rider. The actual increase for those policy holder depends on what each state’s Department of Insurance approves. From what I reviewed, states were approving most of what was requested and premium increase letters were going out this year to Prudential LTC policy holders.
All individual long term care insurance policy holders have to worry about rate increases. In contrast with a hybrid life insurance LTC policy, the policy owner is able to lock in a fixed premium for life with a guaranteed UL plan. For those with other retirement or estate planning goals, Indexed UL plans provide an opportunity for cash accumulation and increasing death or long-term care benefits.