Over the next decade, the nation’s long-term care insurance companies will pay out over $100 billion in claim benefits projects the American Association for Long-Term Care Insurance (AALTCI).
“Insurers this year will likely pay out $10 billion in claims and that number will grow each year as more individuals begin to claim benefits from their policies,” explains Jesse Slome, director of AALTCI. “The $100 billion is money individuals will not have to spend on needed home care or assisted living or skilled nursing home care for themselves or loved ones.”
The Association annually examines the total of claims paid by the nation’s long-term care insurance companies. “While many larger companies like Prudential, Metropolitan Life, John Hancock and Unum no longer make available new policies, they still service their current policyholders and pay claims, lots of them, ” Slome cited. “It is an important story that we strive to tell both consumers and insurance professionals.”
Long-Term Care Companies Pay $9.2 Billion in 2017
According to the Association the nation’s long-term care insurers paid $9.2 billion I benefits in 2017. The AALTCI study of claims data found that some 72.5 percent of claims that began in 2017 were for policyholders age 80 and over. “Almost half of that (22.0%) were for policyholders who were age 90 or older,” Slome notes. “You pay money for this protection and if you live a long life you are very likely to use the policy.”
According to AALTCI, just over one in five claims (20.5%) began when policyholders were between ages 70 and 79. Policyholders between ages 60 and 69 initiated some 5.5 percent of newly opened claims.
To learn more about long-term care insurance costs and planning options call the American Association for Long-Term Care Insurance at 818-597-3227 or visit the organization’s website at www.aaltci.org to find and connect with local LTC insurance professionals.
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