Near-retirees wanting to shield themselves from nursing home costs face a quandary: Should they eat double-digit rate hikes for long-term care insurance, or should they walk away from their policy?
It's a $97,455 question.
(That's how much a year of nursing home care in a private room costs, according to data from insurer Genworth Financial.)
Although long-term care insurance can help retirees and their families manage that expense, many of them are now finding themselves squeezed by premium rate increases.
"Often the peace of mind that people feel when they had just bought the product is an illusion — there is no fix for it," said Scott Witt, founder of Witt Actuarial Services in New Berlin, Wisconsin.
"Now if you want catastrophic protection, you need to pony up for premiums, and those policies are harder to find," he said.