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Long-Term Care Insurance Facts - Data - Statistics - 2021 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) unless as indicated otherwise. THANK YOU..

Click Here To Access 2020 Long-Term Care Insurance Data & Statistics

Click Here To Access 2019 Long-Term Care Insurance Data & Statistics

Click Here To Access 2017 / 2018 Long-Term Care Insurance Data & Statistics


2021 Long-Term Care Insurance Information - Click on the links to 'jump'


Long-Term Care Insurance Policy Costs - 2021 - PURCHASE AGE 55

Based on 2021 American Association for Long-Term Care Insurance annual Price Index survey of leading LTC insurer(s) selected by consumers. Initial policy benefit equals $165,000.

Rates shown below reflect "Select" health which is more costly than "Preferred" health. Rates shown for prior years generally reflect "Preferred" health especially for age 55. WHY THE CHANGE? Because consumers who saw earlier reports called after they were quoted higher rates. We understood and agreed. If you are in Preferred health, you can benefit from lower rates - a reason to comparison shop.



Annual Premium - Purchase Age 55
Single Male, Age 55 (Select Health) $165,000 level benefits  $ 950
Single Male, Age 55 (Select Health) benefits grow at 1% yearly  $ 1,375
Single Male, Age 55 (Select Health) benefits grow at 2% yearly  $ 1,750
Single Male, Age 55 (Select Health) benefits grow at 3% yearly  $ 2,220
Single Male, Age 55 (Select Health) benefits grow at 5% yearly  $ 3,685

Single Female, Age 55 (Select Health) $165,000 level benefits  $ 1,500
Single Female, Age 55 (Select Health) benefits grow at 1% yearly  $ 2,150
Single Female, Age 55 (Select Health) benefits grow at 2% yearly  $ 2,815
Single Female, Age 55 (Select Health) benefits grow at 3% yearly  $ 3,700
Single Female, Age 55 (Select Health) benefits grow at 5% yearly  $ 6,400

Couple Both Age 55 (Select Health) $165,000 level benefits  $ 2,080 combined
Couple Both Age 55 (Select Health) benefits grow at 1% yearly  $ 3,000 combined
Couple Both Age 55 (Select Health) benefits grow at 2% yearly  $ 3,870 combined
Couple Both Age 55 (Select Health) benefits grow at 3% yearly  $ 5,025 combined
Couple Both Age 55 (Select Health) benefits grow at 5% yearly  $ 8,575 combined

PERCENTAGE DIFFERENCE BETWEEN LOWEST & HIGHEST PRICES - with the 3% Option
Male (71%) ------- Female (60%) ------- Couple (52%)


Rates above are for an initial pool of benefits equal to $165,000 (each at age 55). Value of benefits when policyholder reaches age 85 equals $222,400 each (@1%), $298,900 (@2%) or $400,500 each (@ 3%). Prices for State of IL. Prices can vary by State. Calculated: January 2021

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Long-Term Care Insurance Policy Costs - 2021 - PURCHASE AGE 60

Based on 2021 American Association for Long-Term Care Insurance annual Price Index survey of leading LTC insurer(s) selected by consumers. Initial policy benefit equals $165,000.

Annual Premium - Purchase Age 60
Single Male, Age 60 (Select Health) $165,000 level benefits  $  1,175
Single Male, Age 60 (Select Health) benefits grow at 1% yearly  $  1,600
Single Male, Age 60 (Select Health) benefits grow at 2% yearly  $  2,000
Single Male, Age 60 (Select Health) benefits grow at 3% yearly  $  3,525
Single Male, Age 60 (Select Health) benefits grow at 5% yearly  $  3,800

Single Female, Age 60 (Select Health) $165,000 level benefits  $  1,900
Single Female, Age 60 (Select Health) benefits grow at 1% yearly  $  2,550
Single Female, Age 60 (Select Health) benefits grow at 2% yearly  $  3,300
Single Female, Age 60 (Select Health) benefits grow at 3% yearly  $  4,300
Single Female, Age 60 (Select Health) benefits grow at 5% yearly  $  6,600

Couple Both Age 60 (Select Health) $165,000 level benefits  $  2,600 combined
Couple Both Age 60 (Select Health) benefits grow at 1% yearly  $  3,525 combined
Couple Both Age 60 (Select Health) benefits grow at 2% yearly  $  4,525 combined
Couple Both Age 60 (Select Health) benefits grow at 3% yearly  $  5,800 combined
Couple Both Age 60 (Select Health) benefits grow at 5% yearly  $  8,750 combined

Long-Term Care Insurance Policy Costs - 2021 - PURCHASE AGE 65

Based on 2021 American Association for Long-Term Care Insurance annual Price Index survey of leading LTC insurer(s) selected by consumers. Initial policy benefit equals $165,000.

Annual Premium - Purchase Age 65
Single Male, Age 65 (Select Health) $165,000 level benefits  $  1,700
Single Male, Age 65 (Select Health) benefits grow at 1% yearly  $  2,165
Single Male, Age 65 (Select Health) benefits grow at 2% yearly  $  2,600
Single Male, Age 65 (Select Health) benefits grow at 3% yearly  $  3,135
Single Male, Age 65 (Select Health) benefits grow at 5% yearly  $  4,200

Single Female, Age 65 (Select Health) $165,000 level benefits  $  2,700
Single Female, Age 65 (Select Health) benefits grow at 1% yearly  $  3,400
Single Female, Age 65 (Select Health) benefits grow at 2% yearly  $  4,230
Single Female, Age 65 (Select Health) benefits grow at 3% yearly  $  5,265
Single Female, Age 65 (Select Health) benefits grow at 5% yearly  $  7,225

Couple Both Age 65 (Select Health) $165,000 level benefits  $  3,750 combined
Couple Both Age 65 (Select Health) benefits grow at 1% yearly  $  4,735 combined
Couple Both Age 65 (Select Health) benefits grow at 2% yearly  $  5,815 combined
Couple Both Age 65 (Select Health) benefits grow at 3% yearly  $  7,150 combined
Couple Both Age 65 (Select Health) benefits grow at 5% yearly  $  9,675 combined

PERCENTAGE DIFFERENCE BETWEEN LOWEST & HIGHEST PRICES - with the 3% Option
Male (77%) ------- Female (84%) ------- Couple (46%)


Rates above are for an initial pool of benefits equal to $165,000 (for EACH)(each at age 65). Value of benefits when EACH policyholder reaches age 85 equals $201,300 each (@1%), $245,200 (@2%) or $296,000 each (@ 3%). Prices for State of IL. Prices can vary by State. Calculated: January 2021 (Age 60 added July 2021)

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

IMPORTANT: Linked-benefit products today vary significantly and it is virtually impossible to provide an "apples-to-apples" comparison. The examples below are as close as we can come; designed to give consumers a good starting point. It is important to work with a knowledgeable long-term care insurance who can educate you and compare the various options.

Traditional Long-Term Care Insurance Policy - NO INFLATION GROWTH - YEARLY PREMIUMS
Single Male, Age 55 - Pool of LTC Benefits = $165,000  $  950
Single Female, Age 55 - Pool of LTC Benefits = $165,000  $  1,500
Linked-Benefit (Life Insurance + LTC) Policy - Company A - YEARLY PREMIUM PAYMENTS
Single Male, Age 55 - Pool of LTC Benefits = $180,000 / Min. death benefit = $120,000  $  4,625
Single Female, Age 55 - Pool of LTC Benefits = $180,000 / Min. death benefit = $120,000  $  4,600
Linked-Benefit (Life Insurance + LTC) Policy - Company B - ONE SINGLE PREMIUM PAYMENTS
Single Male, Age 55 - Pool of LTC Benefits = $180,000 / Min. death benefit = $130,000  $  75,900
Single Female, Age 55 - Pool of LTC Benefits = $180,000 / Min. death benefit = $130,000  $  77,000
Linked-Benefit (Life Insurance + LTC) Policy - Company C - YEARLY PREMIUM PAYMENTS
Single Male, Age 55 - Pool of LTC Benefits = $167,000 / Min. death benefit = $167,000  $  5,010
Single Female, Age 55 - Pool of LTC Benefits = $167,000 / Min. death benefit = $167,000  $  4,550

Rates above include NO INFLATION GROWTH OPTION so benefit pool WILL NOT INCREASE. Prices for State of AZ. Prices can vary by State. Calculated: January 2021

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

IMPORTANT: Linked-benefit products today vary significantly and it is virtually impossible to provide an "apples-to-apples" comparison. The examples below are as close as we can come; designed to give consumers a good starting point. It is important to work with a knowledgeable long-term care insurance who can educate you and compare the various options.

Traditional Long-Term Care Insurance Policy - With 3% Annual Growth - YEARLY PREMIUMS
Single Male, 55 - LTC Benefits @ Age 90 = $464,300 / no death benefit $ 2,220
Single Female, 55 - LTC Benefits @ Age 90 = $464,300 / no death benefit  $ 3,700
Linked-Benefit (Life Insurance + LTC) Policy - Company A - YEARLY PREMIUM PAYMENTS
Single Male, 55 - LTC Benefits @ Age 90 = $521,850 / $226,000 growing death benefit  $  6,300
Single Female, 55 - LTC Benefits @ Age 90 = $521,850 / $242,500 growing death benefit  $  6,750
Linked-Benefit (Life Insurance + LTC) Policy - Company C - YEARLY PREMIUM PAYMENTS
Single Male, 55 - LTC Benefits @ Age 90 = $455,300 / Min. death benefit = $167,0000  $  6,710
Single Female, 55 - LTC Benefits @ Age 90 = $455,300 / Min. death benefit = $167,000  $  7,210
Policies include 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 2021

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Cost of Waiting To Apply For Long-Term Care Insurance Policies

A comparison of equal coverage. If you wait (say from age 55 to 65) same initial coverage costs 49.9% more. NOT ONLY WILL YOU PAY MORE but you forfeit the increase in potential available benefits (thanks to having an annual growth factor. Plus YOU RISK BEING DECLINED for health reasons or paying more. Finally, YOU MAY LOSE THE COUPLE'S DISCOUNT due to spouse's death, divorce or denial of coverage.

cost of waiting to apply for long term care insurance

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

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Comparing Long-Term Care Insurance Costs - 2016 - 2021 (Male, age 55)

A comparison of equal coverage. Top row with no growth of benefits. Bottom row with 3% compound inflation option.

long term care insurance costs comparison 2016-2021

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

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Comparing Long-Term Care Insurance Costs - 2016 - 2021 (Female, age 55)

A comparison of equal coverage. Top row with no growth of benefits. Bottom row with 3% compound inflation option.

long term care insurance costs comparison female 2016-2021

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

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Couples Both Using Long-Term Care Policy Much More Than Expected

A study by Milliman Actuarial ("Is Your Spouse Contagious?") examined LTC insurance claims of married couples. The need for care for the second spouse after the first spouse commences a claim is consistently higher that they would have expected using their prior data.

long term care need couples 2021

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Among Couples, Surviving Spouses Use Long-Term Care Policy Much More Than Expected

More from the study by Milliman Actuarial ("Is Your Spouse Contagious?"). In the first year following the death of a spouse, a policyholder is about three times more likely to incur an LTC claim than otherwise would have been expected in the absence of spousal mortality information.

long term care need married couples 2021

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Cost of Care (Monthly) - Homemaker Services, Assisted Living, Nursing Home

Costs of care vary and we strongly recommend consumers speak with a local professional who can best share costs for your particular area.
WHY do we post MONTHLY costs? Because most LTC policies (especially linked benefit) cite a maximum monthly benefit payout on their illustrations.
WHY do we post AVERAGES when rates can vary significantly?
Because media like reporting 'averages' and this addresses their needs.

cost of care long term care 2021

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

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Long-Term Care Insurance Paid Claims (2020)

Insurers pay benefits to insured clients. Traditional LTC insurance data.

long term care insurance claims paid 2020

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

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Likelihood Of Using Long-Term Care Insurance Policy Coverage

Lifetime chance that someone who buys a traditional long-term care insurance policy at age 65 will use their policy before they die. Assumes they pay premiums until accessing benefits or die.

likelihood of using long term care insurance policy
     benefits

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

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Likelihood Of Using Long-Term Care Insurance Policy Coverage

The average time from when individual purchased their long-term care insurance policy until when they became eligible for benefits.

long term care insurance claims data 2021

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Largest and Mean Long-Term Care Insurance Claim - Based on 5,000 Claimants Report

A look at just over 5,000 individual policyholders who have received benefits from their long-term care insurance policy. The largest long-term care insurance policy claim benefit paid has exceeded $1.7 million.

largest long term care insurance claim 2021

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Persistency Long-Term Care Insurance Policies, 2015-2019

Each year, over 95 percent of individuals with traditional policies keep them in force. Five (5) percent drop coverage every year BUT this includes those who DIE. Even when facing rate increases, policyholders do NOT drop their coverage. Most accept other options offered by the insurance company. (January 2021)

long term care insurance persistency 2015-2019

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

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Sales of New Traditional Long-Term Care Insurance Policies, 2020

Some 49,000 individuals purchased new (traditional or health-based) long-term care insurance in 2020. While a significant decline from prior years, note the gropwth of linked-benefit products purchased (see chart below).

long term care insurance sales 2020

When citing data, please credit: "American Association for Long-Term Care Insurance, June 2021, www.aaltci.org"

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Sales of New Traditional Long-Term Care Insurance Policies, 1995-2020

Sales of new (traditional or health-based) long-term care insurance have ranged from a high of over 700,000 to the current level .

long term care insurance sales 1995-2020

When citing data, please credit: "American Association for Long-Term Care Insurance, June 2021, www.aaltci.org"

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Total Number of In-Force Annuity & Life Policies With A LTC Benefit

data combo long term care insurance policies in-force

Reprinted with permission from AM Best

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