Policyholders can eliminate the entire increase by reducing their future inflation increases.
UNUM announced its latest in-force premium increase on two of its individual LTC insurance blocks of business impacting policyholders in 21 states.
- 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.
North Carolina increase:
South Carolina increase:
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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:
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.
SCMA and our LTC insurance partner 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 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.
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.