“As Americans live longer lives, it is more vital than ever for families to address vital issues including long term care planning,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance http://www.aaltci.org.  The national trade group established November as Long Term Care Awareness Month in 2001 with the goal of encouraging discussions between generations.  “Even a few minutes to cover some key issues can avoid years of family stress and angst,” Slome notes.

The Association’s studies have found that too few families discuss the issue prior to the time when an actual need for care arises.  “There are a multitude of topics such as making an elderly family member’s home safer to avoid falls,” Slome notes.  “An elderly person’s preference for location of care is also essential as some wish to remain at home while others might prefer to move in with an adult child.”

Some eight million American seniors now own long term care insurance according to the Association.  “I often refer to it as the ‘silent purchase’ because few aging parents tell their adult child they have this protection in place.”

Should an aging parent need long-term care, they might not be in the physical or mental condition to tell their family member about the insurance policy which would provide benefits.  “We do get calls from family members who find policies years after their parent has passed away and wonder if they can collect any benefits,” Slome adds.  “Regrettably, at that point it’s too late.”

Slome urges families who have purchased LTC insurance to discuss where they keep such records with their adult children.  “Thanksgiving is a time to enjoy being with family,” Slome adds.  “But a few minutes of serious conversation will not interfere with the celebration and can avoid so many costly and emotionally devastating problems down the road.”

An estimated 5.1 million Americans have Alzheimer’s disease according to the American Association for Long-Term Care Insurance,  Every 72 seconds someone develops Alzheimer’s which is the leading and most costly long-term care condition. 

The long-term study completed by researchers at New York University tracked 213 adults with and without SCI over an average of seven years, with data collection taking nearly two decades. Further cognitive decline to MCI or dementia was observed in 54 percent of SCI persons, while only in 15 percent of persons free of SCI. 

Experts note that this is the first study to use mild cognitive impairment as well as dementia as an outcome criterion to demonstrate the outcome of SCI as a possible forerunner of eventual Alzheimer’s disease.  The findings indicate that a significant percentage of people with early subjective symptoms may experience further cognitive decline, whereas few persons without these symptoms decline. If decline does occur in those without SCI symptoms, it takes considerably longer than for those with subjective cognitive symptoms. 

Scientists and physicians can now target the prevention of eventual Alzheimer’s disease in the SCI stage, beginning more than 20 years before dementia becomes evident.

“Women have a far greater risk of needing long-term care and indeed two-thirds of all long-term care insurance benefits result from care needs by women,” explains Jesse Slome, executive director of the national trade organization.  “Women also tend to be the ones who initiate the long-term care planning discussion and often are the decision maker when it comes to purchasing long-term care insurance.”

Women over the age of 65 comprise 980,000 nursing home residents in the U.S., according to the “Woman’s Guide To Long-Term Care Insurance Protection.”  Only 337,000 men over age 65 are in nursing homes.  Women are far more likely to suffer from Alzheimer’s Disease that is the cause of the largest and most costly needs for long-term care.   “Women benefit more from owning long-term care insurance,” Slome notes.  “Two-thirds of all insurance benefits are paid to women, 41 percent to single women and 25 percent to married women.”  Single men account for 12 percent of claim benefits and married men for 22 percent.

The guide addresses important planning considerations for women who have spouses or partners as well as women who live alone.  “Each have very specific planning needs and issues,” Slome explains.  “Married women face a likelihood of providing care for their spouse, who typically is older, or facing a very significant annual bill for care.”  Women who live alone lack the spouse or extended family members to assist with caregiving.

Copies of the guide can be viewed on the American Association for Long-Term Care Insurance‘s website and may be purchased by insurance and financial professionals.  To view a copy go to: http:www.aaltci.org/tools or call the organization for information at 818-597-3227.

Research conducted by the American Association for Long-Term Care Insurance (AALTCI), the national trade organization, examined 2007 sales data from 10 leading insurers to determine the percentage of long-term care insurance applicants who qualified for preferred health discounts as well as the percentage who did not qualify for insurance as a result of an existing health condition.

“Individuals mistakenly think long-term care planning is something that can wait until after retirement, but because of health changes that tend to occur in our 50s and early 60s, the facts shows otherwise,” explains Jesse Slome, the Association’s executive director.  “Between one-fifth (20%) and one-third (33%) of individuals who submitted an application for long-term care insurance between ages 60 and 69 were declined coverage because of an existing health condition according to the biennial study.”  The industry average for declined applicants between ages 60-to-69 was 22.9 percent.  For ages 50-to- 59 it was 13.9 percent.

While insurers can decline individuals who apply for coverage with existing health conditions, most reward those who apply while in relatively good health.  “Just over half (51.5%) of individuals who applied and were accepted for coverage last year between ages 50 and 59 qualified for “preferred health” discounts,” Slome acknowledges.  These discounts can reduce the cost of long-term care insurance by 10 to 20 percent each year.  “The savings can amount to hundreds of dollars a year for a couple,” Slome notes, “and they won’t be taken away in the future should your health change.”

Some eight million Americans currently have long-term care insurance protection on an individual basis or through their employer, according to the Association’s 2008 Sourcebook data.  “Some 400,000 people obtained coverage in 2007,” Slome states, “and 83 percent of individuals purchased before age 65.  But, clearly, many people still wait too long to start the planning process only to discover they can’t get coverage no matter how much they are willing to pay.”

More Applicants Qualify For Good Health Discounts

The number of individual applicants who qualified for good health discounts in 2007 rose slightly for most age-bands compared to the Association’s 2005 study.  “Just over two-thirds (66.8%) of applicants between 40 and 49 qualified for the discount in 2007, compared to 53.7 percent in 2005.
“Planning for long-term care is similar to retirement planning,” Slome explains.  “There are significant advantages and reasons to start early.  Your health when you apply is probably the most important.”

It is important to understand that each insurer establishes it’s own criteria for acceptable health conditions.  Likewise discounts and insurance rates can vary quite significantly based on your age, your marital status and health.  “It pays to speak with a knowledgeable long-term care insurance professional who can offer coverage from more than one insurer,” Slome advises.  “The difference in cost can be as much as 30 percent or more annually and since it rarely is advantageous to change policies, it pays to get the best coverage for the best price from the onset.”

For smokers or those individuals whose health is less than perfect, begin the planning process with a long-term care specialist who understands which specific health conditions various insurers will accept.   “They’ll want to know what medicines you have been prescribed, even if you don’t take them, and any current conditions before recommending you submit an application to a specific insurer,” Slome notes.  “No one wants to hear they are declined, especially because once you are declined by one insurer, you may find it harder or possibly impossible to get coverage from another.”

“Long-term care insurance becomes an increasingly attractive planning option when people understand they can’t rely on government programs or their retirement savings should they need long-term care,” said Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance.  The Association compiled data to be published as part of its 2009 Sourcebook.

Ten States With Most Insureds
According to the Association data, the following states have the most residents with long-term care insurance.  “California has over 550,000 people with coverage followed by Florida (about 450,000) and New York (400,000),” Slome notes.  “Alaska, with over 670,000 residents has 5,000 people with coverage, the lowest in the nation.”  Hawaii has about twice the population but some 63,000 residents have long-term care insurance in place.

The top-10 states with residents owning long-term care insurance according to the Association’s 2009 LTCi Sourcebook are:

1. California  6.  Pennsylvania

2. Florida    7.  Ohio

3. New York    8.  Missouri

4. Texas      9.  New Jersey

5.  Illinois    10. North Carolina

Some States See Double Digit Growth
While sales have grown modestly, the Association reports that the number of insureds has grown significantly in certain states.  Data from the most recent state insurance filings reported in the Association’s 2009 Sourcebook note that the number of policyholders grew fastest in Arizona (+ 25.2%) followed by Florida (17.8%).

The states reporting the greatest increase in the number of residents owning long-term care insurance according to the Association’s 2009 LTCi Sourcebook are: (number in bracket represents percentage increase from the prior year’s State filings).

1. Arizona (25.2%)  6.  Missouri (14.4%)

2. Florida (17.8%)  7.  Oklahoma (14.4%)

3. N. Carolina (17.0%)  8.  Louisiana (13.7%)

4. Maine (15.6%)   9.  Massachusetts (13.3%)

5.  Kansas (14.4%)      10. S. Carolina (13.0%)

The American Association for Long-Term Care Insurance (www.aaltci.org) is the professional organization serving both insurance and financial professionals as well as educating consumers nationwide.   The Association publishes the annual Long-Term Care Insurance Industry Sourcebook a compendium of relevant industry data.