Long-term care planning is an important component of an overall financial strategy. Your long-term care insurance policy continues to offer you and your loved ones valuable protection that can help you achieve financial security. The need for a long-term care solution has not changed since you first purchased your policy, and the potential for experiencing a long-term care need only increases as you age.
The information on this page is designed to help New York Life policyowners facing a potential long-term care insurance premium rate increase understand the reasons for the increase, its effect on your policy, your options, and the efforts we are making to help reduce the financial impact of the increase.
Please note that as increases are subject to regulatory approval in most states, the timing increases are implemented will vary by state. The first policyowners are expected to be notified in October 2020 with the first increases taking effect in January 2021. The increase will take several years to implement.
For more than 30 years, New York Life has been helping protect policyowners and their families from the financial burden of a long-term care event. Our goal is to protect as many people as possible from a future long-term care need and to be there for our policyowners when they need us most.
Since 1988, we have provided this important insurance protection to more than 219,000 clients and paid more than $1 billion in long-term care insurance benefits.
(figures as of 7/31/2019)
As a mutual company, New York Life is committed to serving our policyowners each and every day. As a mutual, we are accountable to our policyowners. To uphold our responsibilities, we routinely monitor the performance of our long-term care insurance policies. After an analysis of our long-term care experience, we determined there was a need to increase premiums on two older inforce policy series (issued before 2014) to reflect the claims expected on those policies.
We are dedicated to providing best-in-class service to support our policyowners and their agents throughout the premium increase process, including: providing the information you and your agent need to ensure you make well-informed decisions about your coverage, providing a dedicated toll-free number to reach a dedicated customer service team to answer questions and help you explore your options, and pursuing several measures to help reduce the impact of the increase on policyowners.
The premium increase was requested on the two policy series listed below:
LTCSelect and LTCSelect Plus (4.0 policy series):
Sold between 1997 and 2003
LTCSelect Premier (5.0 policy series):
Sold between 2002 and 2012*
* The 5.0 policy series was sold in Oregon until early 2013, Washington until early 2014, and California until late 2014
This is the second premium increase that New York Life has requested on these policy series and only the second long-term care insurance increase we have requested in our history.
To help provide our policyowners with greater certainty about how this may impact their future premiums, New York Life proposed a unique approach in each of our regulatory filings with the goal of mitigating the financial impact on our policyowners:
Lifetime Premium Guarantee1:
In states where the full amount of the premium increase requested is granted for a policy series, we will guarantee that New York Life will never increase premiums again on that policy series. We believe that we are the first insurer to offer a lifetime premium guarantee of this type. Policyowners who are eligible for the guarantee will receive a policy endorsement stating their premiums are guaranteed after the increase is implemented. The guarantee will only apply in states where the full increase requested is granted and only after the full increase is implemented.
1 Any plan changes or benefit increase option elections, including accepting inflation offers and/or increasing benefits, may be subject to an increased premium.
Attained Age Carve-Out:
We proposed that all policyowners who reach the age of 74 by January 1, 2020 be excluded from the premium increase.
Reduced Increase at Older Ages:
We proposed that all policyowners who are between the ages of 69 to 73 as of January 1, 2020 receive a lower premium increase than policyowners 68 and younger.
Benefit Reduction Options:
Policyowners may also have the option to reduce their benefits to reduce the impact of the increase. Where applicable, policyowner notification letters will include up to two personalized benefit reduction options. Potential options to consider are reducing the maximum daily benefit, reducing the benefit period, or cancelling or modifying riders, such as inflation protection.
We believe that New York Life is the only company to propose a premium guarantee as part of our regulatory filings and only one of a few companies that has offered any form of an attained age carve-out. Since our requests are subject to review by the state departments of insurance, it’s possible they may not approve our requests.
As a mutual insurance company, we believe it is important to share risk with our policyowners. To the extent that a policy includes a lifetime premium guarantee (subject to state approval of our requested increase), we will never seek another increase on that policy, even if our experience deteriorates further over time.
One of the top concerns of policyowners subject to a premium increase is whether they should expect additional future increases. A lifetime premium guarantee eliminates this concern and makes it easier for our policyowners to plan for the future–whether that includes paying the increased premium or reducing their benefits to reduce the impact of the increase.
By exempting policyowners or reducing the premium increase amount requested at older ages, our goal is to help reduce the financial impact of the premium increase as our policyowners age, especially during their retirement years.
In addition to the proposals described above, we will also provide a number of options to help reduce the impact of an increase by adjusting coverage (reducing benefits, or removing or modifying riders). If applicable, these customized options will be available in the notification letters you will receive approximately 90 days before the increase is implemented. Once the information about how this increase may impact your policy is available, your New York Life agent will be prepared to discuss these options in detail. Or you may call our LTC Premium Change Customer Care Team at 1-800-890-7798 Monday to Friday, 8am to 6pm CST.
New York Life submitted formal requests to the insurance regulators in each state, providing an actuarial basis for our request to increase premiums. The regulators review our requests based on their criteria for granting or allowing an increase. In some cases, regulators may not grant the full increase we request, they may require us to implement it in phases, or they may deny our request.
Although we are requesting the same increases in all states for each policy series, the premium increase may vary by state.
Specific details will become available after our request is reviewed by the state department of insurance in the respective policy issue state.
It is also important to note that we cannot increase premiums on individual policyowners. Any premium increase is requested in accordance with the terms of your policy, which means that we can only increase premiums on a class basis.
The timing of the premium increase implementation will depend on when state regulators respond to our requests for an increase.
The first policyowners receiving an increase are expected to be notified in October 2020 with the first increases taking effect approximately 90 days later (in January 2021).
The entire process is likely to take several years and is dependent on when states review, acknowledge, or approve the increase.
October 2020 ▶
First impacted policyowners notified by mail
90 days post notification ▶
Policyowners have opportunity to adjust benefits if desired
January 2021 ▶
First premium increases takes effect (approx. 90 days after notification)
Process continues until increases in all applicable states are implemented
All policyowners receiving a premium increase will be notified by mail approximately 90 days before their increase takes effect. If you have a New York Life agent, he or she will also be notified about your premium increase and will be available to discuss it with you and help you evaluate your options. If you do not have an agent but would like to speak with one, please call 1-800-890-7798 and our team will help connect you with an agent.
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