Consumers hold many misconceptions about long term care insurance and one industry expert shared research into utilization of the relatively new form of protection.
“This is really the first generation of Americans who in large numbers are living long lives and who are finding themselves facing a very high risk of needing costly long term care,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance. A leading long term care insurance expert was preparing to speak to a gathering of nearly 600 industry leaders gathering in Las Vegas for the 2012 Long Term Care Insurance Summit.
“Because it is still such a new area, it is important to educate consumers not just to the real risk they face but ways to plan and prepare,” Slome adds. “An important aspect is sharing information that directly addresses the questions consumers have.” One question pointed out by Slome is do people actually use their policies.
According to the data shared by Slome, a study published in the organization’s 2012 Sourcebook, reports that the average time elapsed between the purchase of long term care insurance and the time a claim was filed is 108 months or approximately nine years. “There are several important things individuals must keep in mind,” Slome notes. “People must health qualify for long term care insurance which is intended to keep costs lower for everyone but it also means one is not likely to need care in a relatively short period of time.”
In addition, the organization points out that typically the cost of insurance paid over a 10 year period will be far less than even one year of the cost of care. “You may pay $1,000 a year but you could have over $150,000 of claim benefits paid,” Slome acknowledged. “We never advise thinking of this in investment terms because the real value is not being a burden on your family and loved ones, but the dollars and cents do make sense.”
November is Long Term Care Awareness Month and the trade group urges individuals to take 10 minutes to learn more about the issue. The organization offers four excellent consumer guides that are available online addressing ways to plan for the long term care risk and providing information relevant for those who may want to consider long term care insurance.
Established in 1998 as a non-profit trade group, the Los Angeles, California-based American Association for Long Term Care Insurance advocates for the importance of planning for long term care and supports insurance and financial professionals who market LTC insurance. To learn more about long term care insurance costs call the organization’s offices at (818) 597-3227 or visit the Association’s website.
LEARN MORE ABOUT LONG-TERM CARE INSURANCE PROTECTION. Get a free, no obligation quote for Long-Term Care Insurance from the American Association for Long-Term Care Insurance. Click here now!
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