When Berkshire Life Stopped Selling Long‑Term Care Insurance
Berkshire Life ceased offering new long‑term care (LTC) insurance policies in December 2022. The company announced the change after a strategic review of its product line, citing declining demand, rising claim costs, and a shift toward more flexible, hybrid solutions.
- When Berkshire Life Stopped Selling Long‑Term Care Insurance
- Why Berkshire Life Made the Decision
- Impact on Existing Policyholders
- How the Market Has Shifted
- Key Trade‑offs Between Traditional and Hybrid LTC
- What Consumers Should Consider Now
- Steps to Take If You Had a Berkshire Life Policy
- Looking Ahead: The Future of LTC Insurance
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Why Berkshire Life Made the Decision
Several market forces converged to make traditional LTC coverage less attractive for both insurers and consumers. Premiums had risen sharply over the past decade as longevity increased and the cost of nursing‑home care outpaced inflation. At the same time, consumer preferences moved toward products that combine life insurance or annuities with LTC benefits, allowing a single premium to serve multiple financial goals. Berkshire Life concluded that continuing a stand‑alone LTC line would require price hikes that could erode its competitive position.
Impact on Existing Policyholders
Current Berkshire Life LTC owners were not left without options. The company honored all existing contracts, continued to process claims, and offered a limited set of policy enhancements such as inflation riders for a fee. Policyholders could also transfer their coverage to another carrier through a non‑admitted "portability" program, though such moves often involve underwriting and potential premium adjustments.
How the Market Has Shifted
Since Berkshire Life's exit, the LTC landscape has leaned heavily on hybrid products. Life‑insurance‑linked LTC riders, indexed universal life policies with care‑benefit options, and annuities that trigger payments when care is needed now dominate new sales. These solutions address two pain points: they provide a death benefit if care is never needed, and they avoid the "pay‑or‑lose" scenario that plagued traditional LTC policies.
Key Trade‑offs Between Traditional and Hybrid LTC
| Feature | Traditional LTC | Hybrid LTC |
|---|---|---|
| Premium Structure | Fixed, often high; increases with age | Flexible; part of larger life or annuity premium |
| Cash Value | None | Accumulated cash value can be accessed |
| Death Benefit | None | Pays out if care never needed |
| Portability | Limited; often requires new underwriting | Generally easier via policy conversion |
| Claim Acceptance | Strict eligibility criteria | Often more lenient, especially with rider triggers |
What Consumers Should Consider Now
Anyone evaluating LTC protection should weigh three core considerations: cost, flexibility, and coverage certainty. Traditional policies can still be purchased from a handful of carriers, but they tend to be expensive and may lack inflation protection. Hybrid options lower out‑of‑pocket costs by bundling benefits, yet they may offer lower maximum daily payouts. Finally, Medicaid planning and personal savings remain essential back‑up strategies regardless of the product chosen.
Steps to Take If You Had a Berkshire Life Policy
- Review your annual statement to confirm the policy is still active.
- Contact Berkshire's customer service to inquire about any available riders or premium adjustments.
- Ask about the portability program if you want to move to a carrier that still offers stand‑alone LTC.
- Compare hybrid alternatives using a cost‑benefit calculator that includes both death benefit and care benefit values.
- Consult a financial adviser who understands LTC underwriting and can model how a hybrid product fits your overall retirement plan.
Looking Ahead: The Future of LTC Insurance
The exit of a major player like Berkshire Life signals a broader industry realignment. Insurers are likely to continue phasing out pure LTC lines in favor of multi‑purpose products that address both longevity risk and estate planning goals. For consumers, the key will be staying informed about product features, understanding the trade‑offs, and integrating LTC protection into a diversified financial strategy rather than treating it as a standalone purchase.