MetLife (MET) announced on Thursday it will discontinue its offering of long-term care insurance to individuals and halt new enrollments into multi-life and group plans with timing based on contract requirements.
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For current policyholders, the move will not affect them if premiums are paid on schedule.
In the last year, long-term care insurance policies have experienced a steep increase in premiums nationwide. Insurance companies struggling with record-low interest rates have upped rates on such policies as a result. Another deciding factor in long-term care rate increases is the fact that policyholders are living longer and generating higher claims than expected.
Overall, the insurance industry has taken a hit in recent years, and it is not expected that many new retirement products sold will retain their low lifetime rates and bond yields.