Higher Long-Term Care Insurance Couples Discount Ending

long term care insurance discountAs an inducement for couples to both purchase long-term care insurance, discounts of up to 30 percent have been available.

“Leading insurers offer significant discounts for married couples or partners,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).  “The discount can reduce the premium cost by as much as 30 percent when both spouses apply.  When only one spouse is insured the discount will still yield a 15 percent savings.”

According to AALTCI, the spousal or partner discount is being reduced or disappearing.  “As insurers file new policies for state approval, the new discount is 15 percent when both spouses have policies or just five percent when only one spouse is insured,” Slome explains.

About a dozen states have yet to approve new policy pricing filed by leading insurers.  ”This provides couples an opportunity to lock in the higher discount and some significant savings,” Slome advises.

Currently, the states where the higher discount remains available include Delaware, Florida, Hawaii, Montana, New Jersey, New York as well as North and South Dakota and the District of Columbia.  California and Connecticut have different pricing models with higher discounts still offered in some situations.

“The ability to still lock in the spousal discount is one reason to act now,” Slome suggests.   Insurance companies require applicants to meet fairly stringent health requirements.  Recent studies reported by the Association reveal that after age 60, there is a 50 percent chance that one of the two spouses will not health-qualify for coverage.  “You want to look at this protection when you are still likely to health qualify,” he adds.

According to AALTCI’s 2021 Long-Term Care Insurance Price Index a California couple both age 65 might pay $3,350 (combined) for a policy from a top insurer that provides each with $175,000 of potential LTC benefits.  In Texas, where the higher spousal discount no longer is available, the same coverage will cost $3,850 annually.

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions.   To obtain long-term care insurance quotes call the organization at 818-597-3227 or visit their website at www.aaltci.org.

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