2020 Long term care insurance tax information - tax deduction long term care insurance - IRS rules long-term care insurance


Long-Term Care Insurance Facts - Data - Statistics - 2020 Reports

The information and data provided below from the American Association for Long-Term Care Insurance is 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).


Click Here To Access 2019 Data & Statistics (2019 Association Studies)
Click Here To Access 2018 Data & Statistics (2018/2017 Association Studies)

2020 Long-Term Care Insurance Information - Click on the links to 'jump'


Americans With Long-Term Care Insurance Protection - 2020

7.5 million Americans have some form of long-term care insurance as of January 1, 2020. Includes traditional LTCi as well as linked-benefit - IRS 7702(G) and 101(b) - products.

long term care insurance policies 2020 America

When citing data, please credit: "American Association for Long-Term Care Insurance, 2020, www.aaltci.org"

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Top States For Long-Term Care Insurance Coverage

The top 10 states where residents have purchased traditional long-term care insurance protection (latest data from 2019 NAIC reports).

long term care insurance policies sales by state

When citing data, please credit: "American Association for Long-Term Care Insurance, 2020, www.aaltci.org"

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Compare Traditional Long-Term Care Insurance to Linked Benefit - NO Inflation Growth

On the chart below, we compare what a 55-year-old would pay for what basically equal options of a traditional long-term care insurance policy as compared to a linked-benefit (life insurance + LTC) policy.

Traditional Long-Term Care Insurance Policy - NO INFLATION GROWTH - YEARLY PREMIUMS
Single Male, Age 55 - Pool of LTC Benefits = $180,000  $ 875
Single Female, Age 55 - Pool of LTC Benefits = $180,000  $ 1,350
Linked-Benefit (Life Insurance + LTC) Policy - Company A - YEARLY PREMIUM PAYMENTS
Single Male, Age 55 - Pool of LTC Benefits = $180,000 / Max. Death Benefit = $130,000  $ 3,625
Single Female, Age 55 - Pool of LTC Benefits = $180,000 / Max. Death Benefit = $130,000  $ 3,400
Linked-Benefit (Life Insurance + LTC) Policy - Company A - ONE SINGLE PREMIUM PAYMENTS
Single Male, Age 55 - Pool of LTC Benefits = $180,000 / Max. Death Benefit = $130,000  $ 83,762
Single Female, Age 55 - Pool of LTC Benefits = $180,000 / Max. Death Benefit = $130,000  $ 73,510
Linked-Benefit (Life Insurance + LTC) Policy - Company B - YEARLY PREMIUM PAYMENTS
Single Male, Age 55 - Pool of LTC Benefits = $180,000 / Max. Death Benefit = $130,000  $ 5,010
Single Female, Age 55 - Pool of LTC Benefits = $180,000 / Max. Death Benefit = $130,000  $ 4,550

Rates above are for an initial pool of benefits based on an initial benefit of $5,000-per-month with a 3-year-benefit period. NO INFLATION GROWTH OPTION so benefit pool WILL NOT INCREASE. Prices for State of AZ. Prices can vary by State. Calculated: January 2020

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Compare Traditional Long-Term Care Insurance to Linked Benefit - WITH 3% Annual Inflation Growth

On the chart below, we compare what a 55-year-old would pay for what basically equal options of a traditional long-term care insurance policy as compared to a linked-benefit (life insurance + LTC) policy.

Traditional Long-Term Care Insurance Policy - With 3% Annual Growth - YEARLY PREMIUMS
Single Male, Age 55 - Pool of LTC Benefits @ Age 90 = $505,000  $ 1,710
Single Female, Age 55 - Pool of LTC Benefits @ Age 90 = $505,000  $ 2,750
Linked-Benefit (Life Insurance + LTC) Policy - Company A - YEARLY PREMIUM PAYMENTS
Single Male, Age 55 - Pool of LTC Benefits @ Age 90 = $505,000 / Max. Death Benefit = $130,000  $ 5,278
Single Female, Age 55 - Pool of LTC Benefits @ Age 90 = $505,000 / Max. Death Benefit = $130,000  $ 5,500
Linked-Benefit (Life Insurance + LTC) Policy - Company B - YEARLY PREMIUM PAYMENTS
Single Male, Age 55 - Pool of LTC Benefits @ Age 90 = $505,000 / Max. Death Benefit = $130,0000  $ 6,710
Single Female, Age 55 - Pool of LTC Benefits @ Age 90 = $505,000 / Max. Death Benefit = $130,000  $ 7,010

Rates above are for an initial pool of benefits based on an initial benefit of $5,000-per-month with a 3-year-benefit period. Includes a 3% annual inflation growth option so benefits increase each year the policy is in place.. Prices for State of AZ. Prices can vary by State. Calculated: January 2020

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Long-Term Care Insurance Policy Costs - 2020

Based on 2020 American Association for Long-Term Care Insurance annual Price Index survey of leading LTC insurers. Age bands released individually during Jan and Feb.

Annual Premium - Age 55 - Average of Leading LTC Insurance Companies
Single Male, Age 55 (Select Health) benefits grow at 3% yearly  $ 1,700
Single Female, Age 55 - benefits grow at 3% yearly  $ 2,675
Couple, Both Age 55 (cost shown is COMBINED for the couple) 3% annual growth  $ 3,050
Rates above are for an initial pool of benefits equal to $164,000 (each at age 55). Value of benefits when policyholder reaches age 85 equals $386,500 each. Prices for State of IL. Prices can vary by State. Calculated: January 2020

Annual Premium - Age 65 - Good Health vs. Some Health Issues When Applying
Single Male, Age 65 (Preferred Health)  $ 1,400
Single Male, Age 65 (Some Health Issues)  $ 2,100
Single Female, Age 65 (Preferred Health)  $ 2,100
Single Female, Age 65 (Some Health Issues)  $ 3,100

Rates shown above are for an initial pool of benefits equal to $162,000 (each at age 65). If you have some health issues, call the Association to discuss. Prices for State IL. Prices can vary by State. Calculated: February 2020



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Long-Term Care Insurance Claims Paid (2019)

The nation's long-term care insurers paid out $11 Billion in claim benefits in 2019. This number represents almost entirely benefits paid to those with traditional long-term care insurance. Very few policyholders with linked benefit policies are receiving claim benefits at this time.

long term care insurance claims paid

When citing data, please credit: "American Association for Long-Term Care Insurance, 2020, www.aaltci.org"

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Long-Term Care Insurance Claim Duration (2019)

The Connecticut Long-Term care program has reported data since the 1990s. Based on a total of 4,458 claimants.

long term care insurance claim duration

When citing data, please credit: "American Association for Long-Term Care Insurance, 2020, www.aaltci.org"

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