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Long-Term Care Insurance Facts - Data - Statistics

The following facts are provided by the American Association for Long-Term Care Insurance based on data researched or gathered by the organization. Information may be used with proper citation (Data from the American Association for Long-Term Care Insurance, www.aaltci.org).


Long-Term Care Insurance Policy Costs - 2018

Based on 2018 American Association for Long-Term Care Insurance annual Price Index survey of leading LTC insurers.

Annual Premium - Average of Leading LTC Insurance Companies
Single Male, Age 55 (Select Health)  $  1,870
Single Frmale, Age 55  $  2,965
Couple, Both Age 55 (cost shown is COMBINED for the couple)  $ 3,000
For Initial pool of benefits equal to $164,000 (each at age 55). Value of benefits when policyholder reaches age 85 equals $386,500 each.

Single Male, Age 60 (Select Health)  $  2,010
Single Frmale, Age 60  $  3,475
Couple, Both Age 60 (cost shown is COMBINED for the couple)  $ 3,490
For Initial pool of benefits equal to $164,000 (each at age 60). Value of benefits when policyholder reaches age 85 equals $333,000 each.

Single Male, Age 65 (Select Health)  $  2,460
Single Frmale, Age 65  $  4,270
Couple, Both Age 65 (cost shown is COMBINED for the couple)  $ 4,675
For Initial pool of benefits equal to $164,000 (each at age 65). Value of benefits when policyholder reaches age 85 equals $287,500 each.

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Long-Term Care Insurance Claims Paid - 2015 thru 2017

Based on 2018 American Association for Long-Term Care Insurance annual claims paid survey. Represents total of all claims paid for traditional long-term care insurance policies during the year (in Billions) and the number of individuals on claim on a specific date (Dec. 31st of each year).

Long term care insurance claims

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Largest Long-Term Care Insurance Claims Paid - Thru December 31, 2017

Based on 2018 American Association for Long-Term Care Insurance survey of leading long-term care insurers.

Largest Claims Paid - Company 1
  FEMALEMALE
Total Value of Claim Paid To Date  $  2.6 Million  $  1.7 Million
Number of Years This Claim Has Been Paid  20 years - 9 months   7 years - 4 months
Time From Policy Purchase to Claim Inception  13 years 9 months   15 years - 4 months
Initial Premium for This Policyholder $  2,600  $  6,600

Largest Claims Paid - Company 2
  FEMALEMALE
Total Value of Claim Paid To Date  $  2,396,944  $  1,592,332
Number of Years This Claim Has Been Paid  14 years - 4 months   9 years - 10 months
Time From Policy Purchase to Claim Inception  8 years - 1 month   6 years - 6 months
Initial Premium for This Policyholder $  10,881  $  4,474

Largest Claims Paid - Company 3
  FEMALEMALE
Total Value of Claim Paid To Date  $  1,498,508  $  1,269,894
Number of Years This Claim Has Been Paid  8 years - 10 months   14 years - 0 months
Time From Policy Purchase to Claim Inception  15 years - 1 month   9 years - 5 months
Initial Premium for This Policyholder $  3,696  $  4,968

Largest Claims Paid - Company 4
  FEMALEMALE
Total Value of Claim Paid To Date  $  1,453,944  $  811,234
Number of Years This Claim Has Been Paid  11 years - 2 months   12 years - 5 months
Time From Policy Purchase to Claim Inception  5 years - 3 months   7 years - 3 months
Initial Premium for This Policyholder $  3,564  $  4,416

Largest Claims Paid - Company 5
  FEMALEMALE
Total Value of Claim Paid To Date  $  1,440,322  $  1,312,647
Number of Years This Claim Has Been Paid  14 years - 6 months   9 years - 6 months
Time From Policy Purchase to Claim Inception  4 years - 1 month   2 years - 9 months
Initial Premium for This Policyholder $  1,778  $  3,320

largest long term care insurance claims paid 2017

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Decline Rates For LTC Insurance Applicants (2017)

long term care insurance decline rates 2017


Source: American Association for Long-Term Care Insurance study of data from leading traditional LTC insurers. April 2018.

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Most Long-Term Care Insurance Claims Begin At Home

long term care insurance claims for home care


Source: American Association for Long-Term Care Insurance study of data from leading traditional LTC insurers. April 2018.

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Long-Term Care Insurance Tax Deductible Limits - 2018

AS YOU AGE … YOUR TAX DEDUCTIBLE LIMIT INCREASES

Tax-qualified LTCi premiums are considered a medical expense. For an individual who itemizes tax deductions, medical expenses are deductible to the extent that they exceed current amount required to meet the individual's Adjusted Gross Income (AGI). The amount of the LTCi premium treated as a medical expense is limited to the eligible LTCi premiums, as defined by Internal Revenue Code 213(d), based on the age of the insured individual. That portion of the LTCi premium that exceeds the eligible LTCi premium is not included as a medical expense.

Individual taxpayers can treat premiums paid for tax-qualified long-term care insurance for themselves, their spouse or any tax dependents (such as parents) as a personal medical expense.

The Association does not provide tax advice. Speak with your accountant for specific rules and limits that apply.

2018 Long Term Care Insurance Federal Tax Deductible Limits

Taxpayer's Age At End of Tax Year - Deductible Limit
40 or less  $  420
More than 40 but not more than 50  $  780
More than 50 but not more than 60 $1,560
More than 60 but not more than 70 $4,160
More than 70 $5,200

Source: IRS Revenue Procedure: 2017-58

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