If you have long-term care insurance, brace for the possibility of a steep increase in premiums this year.

Some of the largest long-term care (LTC) underwriters are asking state regulators for large increases on some policies this year. The current ultra-low interest rate environment is a key reason for the rate hikes. Low rates have cut sharply into the investment earnings that insurance companies depend upon to fund benefit payouts. Investment returns fund up to 60 percent of the funds used to pay benefits, according to the American Association for Long Term Care Insurance (AALTCI). Another factor is the rising longevity of policyholders, and their tendency to hang on to their policies. Insurers expect a certain percentage of…

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