Almost half of Medicare beneficiaries have either one or two disabilities. The disability risk among seniors is important information for two reasons. The first is that disabilities are a key risk that aging Americans face resulting in the need for costly care. And second, because once someone has a disability, they generally can not qualify for long-term care insurance.

The latest data is highly relevant and important to share prior to turning 65 recommends the American Association for Long-Term Care Insurance. Living a long life means the likelihood of needing aide – and that’s where planning is important.

The data reflected seniors 65 and older who had difficulty hearing, seeing, remembering, dressing or bathing. These are Activities of Daily Living used to qualify for benefits under a traditional long-term care insurance policy.

Disability Risk Among Seniors 85-Plus

The risk of disabilities grows as one ages. Research indicates that among those aged 85 and older, approximately 25% have one disability.

Top-10 Disability Risk Among Seniors

The prevalence of disability among older adults is significantly influenced by various health conditions. As individuals age, they become more susceptible to chronic diseases and disabilities that can impact their daily functioning and quality of life. Based on the information provided, the following are the 10 leading causes of disability after age 65:

1. Arthritis or Rheumatism: This condition affects joints and connective tissues, leading to pain, stiffness, and decreased mobility. It is one of the most common causes of disability in older adults.
2. Back or Spine Problems: Issues related to the back and spine, such as degenerative disc disease or spinal stenosis, can result in chronic pain and limitations in movement.
3. Heart Trouble: Cardiovascular diseases can lead to significant functional impairments due to heart failure or other heart-related issues.
4. Lung or Respiratory Problems: Conditions like chronic obstructive pulmonary disease (COPD) can severely limit physical activity and overall health.
5. Mental or Emotional Problems: Mental health conditions such as depression or anxiety can affect cognitive function and daily activities.
6. Diabetes: This metabolic disorder can lead to various complications that affect mobility and overall health.
7. Deafness or Hearing Problems: Hearing loss can impact communication abilities and social interactions, contributing to isolation and disability.
8. Blindness or Vision Problems: Visual impairments significantly affect independence and the ability to perform daily tasks safely.
9. Stroke: A stroke can lead to long-term disabilities affecting mobility, speech, and cognitive functions.
10. Cancer: Various types of cancer may cause disabilities either directly through the disease itself or indirectly through treatments that impair physical function.

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“Claim benefit payouts for policyholders with traditional long-term care insurance coverage have grown from 2020 when insurers paid out $11.6 Billion,” reports Jesse Slome, AALTCI’s director.  “The increase in benefit payouts was expected by the insurers.”

According to AALTCI’s Slome, the amount reported represents claims paid for individuals with traditional or health-based long-term care insurance.  “Data for linked-benefit policies is hard to calculate,” the long-term care insurance expert explains. “First, policies tend to need years before claims are paid to aging policyholders. In addition, there are so many different variations of these policies,” Slome acknowledges.

For 2023, the Association reports that benefits were paid to about 353,000 policyholders. “This represents a nominal increase over the prior year,” Slome shares. For 2022 AALTCI reported benefits were paid to 345,000 claimants. During the calendar-year 2020, AALTCI data reported 325,000 policyholders received claim benefits.

“Long-term care insurance benefits are mostly paid to individuals who receive benefits for qualifying care in their own home or in an assisted living facility,” Slome points out. “Benefits also are paid when policyholders require care in skilled nursing home settings.”

The AALTCI data is gathered and corroborated with leading industry actuaries including historical average annual growth rates from the last 10 years from companies’ year-end reporting data.

Access the 2024 Long-Term Care insurance Price Index and other current data and statistics at the Association’s website. The organization reports industry costs for individuals and couples at ages 55, 60 and 65. Go to https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2024.php.

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of long-term care planning. Since 1998 AALTCI has supported insurance professionals who market both traditional and hybrid long-term care solutions.  To access information, go to https://www.aaltci.org or call the organization at 818-597-3227.

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The overwhelming majority of consumers experiencing a premium increase on their long-term care insurance chose to pay the higher premium.  The findings of a new analysis were released today by the American Association for Long-Term Care Insurance.

“Between 50 and 60 percent of policyholders choose to keep their original policy benefit levels and pay the increased premium,” explains Jesse Slome, American Association for Long-Term Care Insurance director.  ”While no one likes to pay more money, these individuals recognize the value of this protection because they are older and thus closer to the risk of needing long-term care.”

According to the Association between 20 and 30 percent of individuals notified of an approved premium increase chose to adjust their policy provisions.  “Many buyers initially selected the 5 percent inflation growth option,” Slome notes.  “When they review their policy benefits along with their present financial situation, it often makes sense to reduce the growth factor and thus avoid the premium increase.  In some cases, they may even pay less money for their continued long-term care insurance coverage.”

Between 10 and 20 percent of consumers elect the non-forfeiture option Slome shares.  “Typically, these individuals will stop paying premiums but will still qualify for benefits should they need qualifying care,” Slome notes.  “The last time we conducted such an analysis, it was common for only 1-3 percent of policyholders to drop coverage,” Slome adds.

The long-term care insurance executive attributed the change to ‘premium increase fatigue’ as well as two other factors.  “The long-term care insurance industry has failed to convey to consumers how this protection is benefiting hundreds of thousands of families each year,” Slome shares.
“And, for some, the value of accrued benefits are perceived to be sufficient for meeting future needs. Paying continued premium is viewed as no longer making financial sense.”

Rate Increases – Long-Term Care Insurance Data

Rate Increase and other long-term care insurance statistics,  To access the latest long-term care insurance statistics go to https://www.aaltci.org/ltcfacts-2022.php.

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of long-term care planning and supports insurance professionals who market both traditional and hybrid long-term care solutions.  To access information go to https://www.aaltci.org or call the organization at 818-597-3227.

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“Short-term care insurance is one of the best kept secrets for men and women who have issues when it comes to long-term care insurance planning,” states Jesse Slome, director of the American Association for Long-Term Care Insurance.

“It is the ideal option for those who cannot health qualify, or those who are too old or who merely want a lower-cost option.”

Short-term care insurance policies are available in many states.

This special form of protection can provide similar benefits to traditional long-term care insurance.  While traditional long-term care insurance companies generally stop accepting applications after age 75, short-term care policies may be purchased up to age 85.

“Polices can pay for care at home as well as in skilled settings such as nursing homes,” Slome explains.  “There are some significant differences and even some advantages that make this an option worth considering.”

The long-term care insurance expert notes that short-term care insurance policies are generally simpler to health-qualify for.  “There are plans with just a few health-related questions,” Slome adds.  “Many older men and women have some existing health issues that make them ineligible for traditional long-term care insurance.  Short-term care coverage may be just what the doctor ordered.”

Short-term care insurance policies generally charge women the same premium as men according to Slome.  “That can be a significant advantage especially for older women on their own,” he notes.  Traditional LTC insurance policies generally charge women around 30-to-40 percent more than men.

The Association’s 1-Minute Primer provides an overview of the benefits of these policies.  A map showing states where the policies are available is included.  Pricing examples for both men and women ages 65 and 75 are shown.

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 access the short-term care insurance information, visit the organization’s website at https://www.aaltci.org/short-term-care-insurance/.   To obtain short-term care insurance costs from a specialist in both short-term and long-term care insurance call the organization at 818-597-3227 or visit their website www.aaltci.org.

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January 21, 2022 – An analysis of over 5,000 long-term care insurance found that 80 was the mean age at time of claim according to the American Association for Long-Term Care Insurance.

“People understand why they may need long-term care insurance,” states Jesse Slome, director of the American Association for Long-Term Care Insurance.  ”What they often ask is whether people actually benefit from owning this protection.  For that reason, we strive to share the most relevant and latest data regarding long-term care insurance claims.”

Slome shared new claims information with insurance professionals marketing long-term care insurance protection.  “The data reveals helpful information you’ll want to share with individuals considering long-term care insurance,” Slome advised.

Access Claims-Paid Data and Latest LTCi Statistics

According to Slome, the analysis reported data on 5,439 policyholders studied by the Connecticut Partnership for Long-Term Care.  “Over half (59%) of the claims were women and 41 percent of all claimants were not married at the time.  That’s important because many people are married when they start planning but should understand they may not have a spouse to provide care at older ages.”

Click here to access 2022 long-term care insurance statistics.

Among the data shared by the long-term care insurance expert was the amounts paid to date per-claimant.  “The mean was $142,043 but the largest claim was $1.9 million,” Slome shared.  “Those very large claims are definitely a risk but our analysis of years of long-term care insurance statistics validate my position that some amount of protection is always better than having none.”

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 access the latest long-term care insurance claims statistics and other data visit the organization’s website at www.aaltci.org/LTCFacts-2022/.   To obtain long-term care quotes from a long-term care insurance specialist call the organization at 818-597-3227 or visit their website www.aaltci.org.

Slome is also head of the American Association for Medicare Supplement Insurance.  AAMSI supports insurance professionals who market Medicare Advantage and Medicare Supplement insurance products.  Access Medicare insurance statistics via the organization’s website.

The post Newest Long-Term Care Insurance Claims-Paid Data Shared appeared first on American Association for Long Term Care Insurance.

“The tax advantages and long-term care planning options for businesses can be significant,” says Jesse Slome, director of the American Association for Long-Term Care Insurance.  “Tax deductibility is now possible with some of the hybrid long-term care policies people are increasingly purchasing.”

A hybrid long-term care policy combines the benefits of life insurance or an annuity with long-term care benefits.  “If it turns out that long-term care (LTC) is not needed, the life portion pays a death benefit to the designated beneficiary when the insured passes away,” Slome explains.

All traditional long-term care insurance policies and a limited number of hybrid policies attached to life insurance with separately identifiable LTC premium components will offer tax deductibility.  “Businesses formed as C-Corporations enjoy the most significant tax benefits,” Slome notes. Some 90 percent of C-Corps have fewer than 100 employees according to Census data.  “Every small and mid-sized business owner looking for tax and planning advantages would benefit by learning more,” he adds.

According to the Association, an increasing number of insurance companies are offering hybrid long-term care options.  The plans can vary however in terms of meeting the criteria for tax deductibility, policy costs as well benefit provisions.  ”It makes comparing the available options most worthwhile,” Slome advises.

Among hybrid long-term care policies, potentially significant differences include how the insurer will eventually pay claims.  “The differences can vary most in terms of how home care benefits are paid,” Slome points out.  “Some policies utilize a reimbursement formula with specific contractual limitations regarding who can provide care.  Alternatively, a cash benefit method provides payments without such limitations including the ability to pay family members who are providing care.”

“Cash payments provide the greatest flexibility and possibilities when care is needed,” explains Tony Massenelli, Director, Long-Term Care Sales for Nationwide, a leading provider of hybrid long-term care solutions. “One of our plans provides a retroactive lump-sum cash payment for home care back to day-one after the 90-day elimination or deductible period is met.”

Other differences include options that can increase the future value of available benefits. “An inflation growth option can address the risk of rising care costs,” adds Slome who notes that most insurers offer a fixed rate formula.  “Nationwide’s CareMatters II policy also offers an inflation option tied to the increase to U.S. medical care costs, an option that a number of long-term care insurance specialists find is more relevant for their clientele.”

To learn more about both traditional or hybrid long-term care insurance visit the American Association for Long-Term Care Insurance website.  To receive no-obligation comparisons and long-term care insurance quotes from an independent specialist, call the organization at 818-597-3227.

About the American Association for Long-Term Care Insurance.   Founded in 1998, AALTCI advocates for the importance of protecting against the real risk of needing long-term care and supports insurance professionals who market traditional and linked-benefit LTC insurance solutions.   Visit https://www.aaltci.org for more information.

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“People mistaken believe that they can apply for long-term care insurance at any age and that’s clearly never been true,” according to Jesse Slome, AALTCI’s director.  “In fact, our preliminary findings reveal that insurers have learned quite a bit about who is at risk and how much long-term care claims can potentially cost, which means they scrutinize every applicant’s health more than ever before.”

The Association is collecting data regarding applicants for long-term care insurance policies.  “The last time we looked at industry decline rates was 2014 and we know things have changed in the ensuing five years,” Slome explained.  “It is important information necessary to both educate insurance professionals as well as consumers who might want to investigate long-term care insurance as an option to cover potential risk of needing care at home or in a skilled nursing facility.”

“Some 44 percent of individuals who applied for coverage and were between the ages of 70 and 79 when they applied were declined back in 2014,” shares Slome.  The Association gathered data from leading long-term care insurers based on age bands.  “The decline rate was 30 percent for individuals between the ages of 60 and 69.”

“Preliminary data for 2019 shows a slight increase in the decline rate,” Slome noted.  “If you ant to consider long-term care insurance as an option it is vitally important to begin the investigation process early, generally between 50 and 65 when you are still more likely to be able to health qualify for this coverage,” Slome advised.  “The good news is that once the insurance company accepts you for coverage, you can not be cancelled even if and when your health changes.”

The Association plans to release finalized numbers shortly.  In the meantime, those seeking data on long-term care insurance can visit the Association’s website where the latest studies and findings can be accessed at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2019.php

The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning.   Established in 1998, the organization connects consumers with knowledgeable professionals who are independent advisors for no-cost, no-obligation long-term care insurance costs quotes and policy comparisons.

The post Half Of Older Long-Term Care Insurance Applicants Declined – Apply Between 50 and 65 appeared first on American Association for Long Term Care Insurance.

See latest long-term care insurance statistics, data, costs (Click this link)

“Individual buyers understand the consequences associated with living a long life which often include the need for long-term care,” explains Jesse Slome, director of AALTCI.  “Those who want to have a plan continue to see value in products which can pay for costs associated with needing that care.”

According to the Association of the roughly 350,000 individuals who purchased coverage, roughly 16 percent opted for traditional health-based long-term care insurance.  “The trend to combination products continues and they can be a very viable option,” Slome notes.

“Unfortunately many consumers are tainted by what they have read about older stand-alone policies,” Slome adds.  “The traditional long-term care insurance policies offered today do not have the premium instability of the older policies.”

The growth of combination products in recent years has prompted more insurance companies to offer such products and to expand their offerings.  “In the past, most of these policies were sold as single premium requiring a single payment of $50,000 to $100,000 per individual,” Slome explains.  “Today, insurers are offering flexible premiums which allow annual payments for this important protection.  That’s far more consumer friendly and something buyers clearly prefer.”

Headquartered in Westlake Village, California, the American Association for Long-Term Care Insurance advocates for the importance of long-term care planning.   The organization connects consumers with knowledgeable professionals who are independent advisors for no-cost, no-obligation long-term care insurance quotes.   Consumers seeking long-term care insurance cost comparisons for either traditional or linked-benefit policies 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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“Millions of Americans have planned for the very real risk of one day needing long-term care,” explains Jesse Slome, director of the long-term care insurance association.   “They have purchased a traditional long-term care insurance plan on an individual basis or when it was offered through their group employee benefits program.”

The Association shared the latest state-by-state data on the number of individuals who have long-term care insurance policies.  “The data comes from the National Association of Insurance Commissioners annual study which only looks at traditional LTCi plans,” Slome noted.  “Over the past few years, far more individuals have opted for linked-benefit plans that combine a life insurance or annuity policy with one that may also provide payouts for qualifying long-term care expenses.”

The 10 largest states based on 2017 policyholders include:
California  (634,572)
Texas (443,963)
New York (408,354)
Florida (341,816)
Illinois (332,446)
Pennsylvania (265,239)
Virginia (246,281)
Ohio (243,181)
New Jersey (218,164)
Minnesota (216,012)

“Most of the states reported nominal declines in the number of individuals with coverage,” Slome pointed out.  “Only Kansas and Nevada reported year-over-year increases.”
Some eight million Americans have some form of long-term care insurance protection according to the American Association for Long-Term Care Insurance.  “I tell people that long-term care is a real risk that faces all Americans but insurance is an option for a specific segment of the U.S. population,” Slome shares.  “You have to be someone who believes in planning.  You have to be able to health-qualify for this protection and you have to be able to afford the premiums which generally range from about $100-monthly when you apply in your mid-50s to twice that if you wait until your 60s.”

Best long term care insurance information website www.aaltci.org

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 agents or 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 expert

A look at some nearly 4,000 long-term care insurance policyholders receiving claim benefits reveals some interesting insights according the director of the American Association for Long-Term Care Insurance.

“All the media focus surrounding long-term care insurance is on whether it makes sense to buy this coverage but little attention deals with how real policyholders actually benefit from the protection,” explains Jesse Slome, director of the national long-term care insurance association.  “Data on long-term care insurance claims is hard to come by but is extremely revealing.”

Slome was speaking to leading insurance professionals sharing some of the latest data from the just released statistics shared by the Connecticut Partnership for Long-Term Care.  “To the best of my knowledge, Connecticut is the only state still sharing data which is a real shame,” Slome pointed out.

According to the report there were 40,833 Partnership qualified long-term care insurance policies in force as of June 30, 2018.   “To date, the number of policyholders who have qualified to receive benefit payments as a result of having LTC insurance was 3,829,” Slome shared with the group.  “Some 1,044 policyholders received services during the latest quarter which makes the data current and relevant.”

The ages for policyholders when their claim first began ranged from 31 to 99 with the mean age for a claimant reported at 79.  “We know the vast majority of long-term care insurance claims begin when the policyholder is age 80 or older,” Slome notes based on Association studies.  The average age at time of policy purchase reported by the Connecticut data was 66.  The average time that elapsed between the purchase date and eligibility date for claim benefits was 154 months or 12.8 years.

Individuals with long-term care insurance policies included in the study received aggregate benefits that ranged from a low of $19 to a high of $1,578,605.  “The mean benefit paid was $122,436 which would be far more that the premiums paid for this coverage,” Slome adds.

“The risk of needing long-term care as we age is real and far too few Americans have an understanding of their options,” Slome concluded.  “Planning for something that likely won’t be needed for 10, 15 or 20 years is difficult and easy to put off but that is a huge mistake many people make.”  Long-term care insurance must typically be purchased prior to age 65 when it is reasonable in cost and individuals are more likely to meet the health qualifications imposed by insurers at the time of application.

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 agents or 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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