“Women account for 64 percent of long-term care insurance claims, men for 36 percent,” explains Jesse Slome, director of AALTCI, the national long-term care insurance association.   The organization shared data from an analysis of claim data shared by seven of the largest long-term care insurance companies.

“Women are likely to need long-term care for a variety of reasons that generally result from living longer lives as well as conditions like dementia and Alzheimer’s disease,” Slome notes.  “This has been similar in prior studies and is one of the reasons women now pay more for long-term care insurance than men – they need this protection and benefit greatly from having it.”

According to recent data shared by the Association’s 2019 study of long-term care insurance claims, the largest claims paid by reporting insurers had surpassed the $2 million-per-claim paid level.  “Some of these claims last 10 to 15 years and while that’s the worst case scenario, this is a reality that people need to be aware of,” Slome adds.  In 2018, the nation’s long-term care insurers paid out a cumulative $10.3 billion to over 300,000 policyholders.

AALTCI’s director shared plans for a campaign specifically targeting older women on their own.  “We are going to find a few female agents who are passionate about educating women and helping them affordably plan for the real risk they face,” Slome shared.

The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning and helps consumers connect with knowledgeable professionals who are independent advisors.   Consumers looking for local long-term care insurance cost comparisons should visit the Association’s website at www.aaltci.org or can call the organization’s national headquarters at 818-597-3227.

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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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According to the 2018 Long-Term Care Insurance Price Index, an annual compendium of pricing prepared by the American Association for Long-Term Care Insurance, some costs have actually declined compared to a year earlier.

To see the fuller 2018 Long-Term Care Insurance Price Index – click the link below,
2018 Price Index LTC

“In general costs increased slightly compared to our 2017 analysis, but indeed in some situations though purchasing a new policy could pay slightly less,” reports Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).    The national trade group released their 2018 Long-Term Care Insurance Price Index.

According to the 2018 LTC Price Index, the average premium for a 60-year-old couple was $3,490 annually.   The Association’s 2017 study reported the average premium was $3,790.  “There are a number of reasons for the change,” Slome shares.  “There are fewer insurers offering traditional long-term care insurance policies currently and some of the higher priced insurers sell so few policies that we excluded them from this years study as they really were not representative of the market conditions.”

A single 55 year old male could expect to pay $1,870 annually for benefits that would grow to be worth $386,500 when the policyholder turned age 85.  Slome noted that the typical individual needs long-term care at older ages, with most claims starting when policyholders are in their 80s.

Women continue to pay more for long-term care insurance than men.  A single 55-year-old female would pay $2,965 annually for the same potential benefit as her male counterpart.  “Women face a far greater risk of needing long-term care,” Slome explains.  According to AALTCI, women account for two thirds of all long-term care insurance benefits paid by insurers.

2018 Costs For Virtually Identical Coverage Continue To Vary

What has not changed according to AALTCI’s 2018 Price Index analysis is the finding that costs for virtually identical policy coverage vary significantly from one insurer to the next.    “Each insurer establishes their own prices and available discounts and the cost for virtually identical coverage can vary,” Slome notes.    “You generally only buy long term care insurance once, so it’s important to do it correctly the first time,” he adds.

The Association’s website offers consumers free access to read informational guides.  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.

AVAILABLE FOR INTERVIEWS – Contact Jesse Slome at AALTCI  Call 818-597-3227 or Email:  jslome @ aaltci.org

Jesse Slome, long term care insurance expert

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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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