A Wake-Up Call for Ladies: Act Now to Save 20-40% on the Real “Girl’s Best Friend”

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Long-term care insurance will soon cost more for many women. Minnesota-based Newman Long Term Care explains why, and offers free educational guide to women.

The first insurer will debut gender-specific pricing on April 15th in over 30 states. Other insurers have indicated they will soon follow suit. The time to explore your options is now.

With all due respect to Marilyn Monroe and diamonds, many women would argue that it is retirement security – not diamonds – that is a girl’s best friend. Relative to the topic of retirement security, the cost of a must-have item (one that is in place for the rest of a policyholder's life) is literally increasing 20-40% over the coming months. Long term care insurance will soon be priced higher for most women than it is for men.

Try to imagine another area where a delay of a few months would cause you to pay hundreds of dollars more each year – unnecessarily – for the rest of your life.

It sounds dramatic, and it is. Here’s what is happening:

Soon, many insurance companies are changing the pricing on long-term care insurance from unisex to gender-specific rates. When that happens, women who decide to purchase a new long-term care insurance policy will pay an estimated 20 to 40 percent more than the same coverage would cost if purchased now.

Why is this happening?
The pricing difference might come as a surprise to women who enjoy lower life insurance premiums than their male counterparts. Long-term care insurance rates are not based on longevity per se. Instead, they are based on a prediction of how likely a population will live with a chronic condition, illness, or severe cognitive impairment requiring extended care before they die. Since some illnesses such as Parkinson’s and Alzheimer’s are correlated with advanced age, and since women usually outlive their potentially-caregiving mates, women’s long-term care claims last longer and are more costly. Gender-specific rates will reflect this reality.

What is the timing?
The window of opportunity is closing quickly. Genworth Financial will debut gender-specific pricing in over 30 states beginning April 15th. Three other leading insurers are already well down the road to gender-specific pricing, and others are expected to follow. Many have informally indicated that they will be making the changes before summer.

Women bear a unique risk
While long-term care is a huge issue for everyone, women in particular bear unique risks. Not only are women most likely to reach an age where long term care is needed, but since men often need care first, couples without plans often deplete their retirement savings to pay for it. This often leaves the wife, who is likely to live several more years, with no spouse to care for her, and less money to depend on for her own retirement and future care.

Act now to purchase coverage at what will seem like bargain-basement prices in the future. If you snooze – you will lose. Dollars, that is.

What to do?
Newman Long Term Care is offering a free educational guide entitled “The Women’s Guide to Long Term Care Planning”. This guide not only outlines the basic components of risk and how to reduce it, but also provides a starting point to have a conversation with an insurance agent or financial planner. All insurance agents can provide consumers with a free quote, and independent agents can even shop around between several carriers to provide buyers with the best coverage options and comparison quotes. Request a copy of this free guide and a complimentary comparison quotes by visiting http://www.newmanlongtermcare.com/actnow.

About Newman Long Term Care
Founded in 1990, Newman Long Term Care has focused exclusively on long-term care insurance for more than two decades. The Minnesota-based firm is a national leader in the industry and currently sells long-term care insurance in all 50 states. For more information about Newman Long Term Care, visit http://www.NewmanLongTermCare.com.

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Craig Roers

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