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If you bought a long-term care policy in the past two decades, now isn’t the time to let it lapse.

In the last decade, hundreds of thousands of middle-class families annually bought these policies, alleviating worries about future payments for nursing homes, assisted-living facilities and in-home aides. Since then, however, there have been double-digit-percentage rate increases, a retreat from the market by many insurance companies, and now an expected liquidation of two units of Penn Treaty American Corp.

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