Long-Term Care Rate Filing - Lincoln Benefit Life Company (Individual)
On August 17, 2018, Lincoln Benefit Life Company requested a 35 percent increase on a small block of business of individual long-term policies sold from 2003 to 2005, which are no longer being marketed.
There are approximately 30 policies in force in Connecticut.
The company said in its filing that the increase is needed because of higher anticipated claims cost due to more policies in effect than expected, people are living longer and benefits will be paid over a longer period of time.
Unlike medical health insurance with premiums set to cover expenses incurred only during the upcoming policy year, long term care premiums are set to cover expenses that are not expected to occur until a distant date, sometimes 20 years in the future.
The company said its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase.
If approved, the new rates would take effect after the company has given its customers 60 days’ notice. Under Connecticut law, long-term care premium increases of 20 percent or more must be phased in over three years or longer.