Jesse Slome, long term care insurance association director

Los Angeles, CA – January 17, 2017 – The nation’s long term care insurance companies paid $9.2 Billion in claim benefits to some 295,000 individuals in 2017 according to the American Association for Long-Term Care Insurance.

“The total of all benefits paid increased as did the number of long term care insurance policyholders on claim,” reports Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI), a national trade group.  According to AALTCI, in 2016, total claims amounted to $8.65 Billion paid to some 280,000 individuals.

The Association conducts an annual study of claims paid to policyholders who have a traditional, health-based long-term care insurance policy.   Because the number of individuals on claim can vary on a daily basis, the Association measures based on a fixed date each year.  “We report 295,000 received benefits but during the year actually many more individuals and families benefited from this important insurance protection.”

“The total value of benefits paid was also undoubtedly larger as there are thousands of individuals who own linked benefit life insurance or annuity policies that can also provide LTC benefits,” Slome acknowledged.

“When you live a long life the risk of needing services referred to as long-term care increases significantly,” Slome explains.  “Without insurance to pay some or all of the cost, the caregiving responsibility often falls on elderly spouses or adult children caring for their aging parents.”

“Long term care insurance provides more than just money,” Slome adds.  “It’s as much about having control and choices, while protecting your retirement plans and lifestyle.”

To compare long term care insurance costs connect with a designated professional by calling the national organization at (818) 597-3227 or visiting their website where local agents can be found.

The American Association for Long-Term Care Insurance is the national professional organization exclusively dedicated to promoting the importance of planning for long-term care needs.

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Long-Term Care Awareness Month logo 2017

October 23, 2017 -  Los Angeles, CA — Tax deductible limits for traditional long-term care insurance premiums paid in 2018 have been increased according to the American Association for Long-Term Care Insurance.

“The tax deductibility of some tax-qualified long-term care insurance provides significant value to consumers especially after they retire” explains Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).   “The special tax advantages are only available with tax-qualified health-based long-term care insurance though it would be valuable one day to see them added to linked-benefit products such as life insurance or annuity policies that can provide a future long-term care benefit.”

According to Slome, the vast majority of new long-term care insurance policies purchased today are combo products.  “Only traditional long-term care insurance policies have the benefit of potentially being tax-deductible to an individual,” Slome acknowledges.  “After retirement when a person’s income often declines, the tax deductions for your premium costs can take on a significant added value.”

Premiums paid for traditional long-term care insurance are includable in the term ‘medical care’.   The following are the just announced 2018 limits:

Attained Age Before Close of Taxable Year         2018 Limit
40 or less                                                                   $420
More than 40 but not more than 50                           $780
More than 50 but not more than 60                          $1,560
More than 60 but not more than 70                          $4,160
More than 70                                                            $5,200

“Our nation needs to have more Americans saving for retirement and also having a plan to pay for the very real risk of needing long-term care,” Slome adds.  “A 70-year old couple has the potential to deduct over $10,000 each year and that should give one real pause to reflect on the value of planning while you can still health-qualify for this protection.”

The American Association for Long-Term Care Insurance advocates for the importance of planning and supports insurance and financial professionals who provide long-term care financing solutions.  To see prior year’s tax deductible limits, visit the organization’s website (www.aaltci.org/tax) or call the organization at 818-597-3227 to connect with a long-term care insurance professional who can provide no-obligation and cost comparisons.

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Jesse Slome, long term care insurance expert

Los Angeles, CA – February 3, 2017;  A couple in their 60s both purchasing new long term care insurance coverage can expect to pay between six and nine percent more  compared to a year ago according to the annual industry analysis of prices.

“A typical couple where both spouses are age 60 will pay between $100 and $150 a month each for long-term care insurance protection,” reports Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).    The national trade group just released their 2017 Long-Term Care Insurance Price Index, an annual examination of costs for new policies available.

“We advocate for a ‘Good-Better-Best’ approach to long-term care planning,” Slome explains.   Good coverage he shares provides benefits for up to 360 days with a benefit pool that increases each year as the policyholder ages.   ”For many individuals who ultimately need long-term care, this is going to be sufficient or good coverage, and it’s certainly going to be far more affordable,” Slome adds.  About half (41%) of current long-term care insurance claims end within one year according to AALTCI data.

According to the 2017 LTC Price Index, new policy rates for a 60-year-old couple increased between six and nine percent compared to the prior year.

Costs For Single Men Actually Decline; Rates Still Vary Widely Among Remaining Insurers

Rates for single men remained fairly level or, in some instances, actually declined compared to 2016 reports AALTCI.   “Our rate comparison for a single 55-year-old man showed a year-to-year decline of 20 percent in some instances,” Slome acknowledged.   A single male, age 55, could anticipate paying anywhere from $90 to about $150-per-month for long-term care insurance available from some of the leading insurers.

Costs for virtually identical policy coverage still vary significantly from one insurer to the next according to AALTCI’s 2017 Price Index.    “Insurers each set their own rates and the price for virtually identical coverage can vary,” Slome states.    The AALTCI analysis found rates varied by as much as 70 percent a decrease from the prior year when some costs ranged by 94 percent.  “You generally only buy long term care insurance once, so it’s important to do it correctly the first time,” Slome adds.

To obtain long term care insurance costs from a professional with expertise specifically in long term care insurance products offered by multiple leading companies call the national organization at (818) 597-3227 or visit the Association’s website at www.aaltci.org.

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