An option is what’s called short-term care insurance, now available from a number of companies. “There is currently a significant opportunity for Colorado seniors to get coverage at a significant savings,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance.

Colorado Long-Term Care Plan Savings

A just concluded analysis found that a 70-year-old Colorado woman could buy coverage for less than half of what a 70-year old woman in Chicago would pay.

“Each insurer establishes their pricing and often you can find and take advantage of some significant savings,” Slome explains. The Association was looking into home care benefits. “Most seniors today want the ability to age and ultimately receive care in their own home,” Slome notes. “Indeed most long-term care is provided in the home and that’s where a home care policy can be very beneficial.”

In this particular instance, the Association was looking at a policy that provided $1,050 in weekly home care benefits for a 52 week period. “In Denver, Colorado a 70-year-old woman would pay $519 for $54,600 of potential benefits,” the Association director shares. “In Chicago, a 70-year-old woman would pay $1,133 yearly for identical coverage.”

To learn more about long-term care planning, call the American Association for Long-Term Care Insurance at 818-597-3227 or visit the organization’s website at https://www.aaltci.org.

Short-Term Care Insurance (STCI) presents a more affordable alternative to traditional long-term care insurance. For many seniors in Colorado, the cost of long-term care can be prohibitive, with monthly expenses ranging from $2,000 to $10,000 or more. STCI policies typically range from $50 to $200 per month, making them a viable option for those on a tighter budget. Additionally, STCI often has simpler qualification processes compared to long-term care insurance, which may involve extensive medical evaluations.

One significant advantage of STCI is that it usually comes with a 0-day deductible period. This means that benefits kick in immediately upon qualifying for coverage—an essential feature for seniors who may face sudden health issues or accidents requiring immediate assistance. Furthermore, STCI can complement Medicare coverage by providing additional financial support without overlapping restrictions found in traditional long-term care policies.

Many health issues requiring care are often resolved within a year; thus, STCI is tailored to meet these short-term needs effectively. It covers various services such as home health aides and nursing home stays for up to one year, ensuring that seniors receive necessary support during recovery periods without incurring overwhelming expenses.

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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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2024 Long-Term Care Insurance Claims Data

A just-published report from the Connecticut Partnership for Long-Term Care Insurance can provide some valuable insights explains Jesse Slome, director of the American Association for Long-Term Care Insurance.

“Thankfully Connecticut remains the only state that publishes current and highly relevant data regarding long-term care insurance,” declares Jesse Slome, AALTCI director. “Information is essential to educating people about the value of this protection and reasons to consider it as part of their longevity planning. And 2024 long term care insurance claims data is unbelievably helpful to those marketing this valuable protection.”

According to Slome, the data looked at some 37,201 policies in force. “For me, the key data I look for is claimant data,” Slome explains. “People want to know if owning long-term care insurance pays. By pays, they mean, do insurers pay benefits, at what ages and how much?”

“Of the 6,878 total claimants, 60 percent represented care by a home health aide or a home visit by skilled nursing,” Slome points out. “Only 34 percent of claims were for nursing home and 29 percent for assisted living. I like to share with reporters and consumers that this is really nursing home avoidance protection and the numbers validate that.”

2024 Claims Data

Number of Policyholders who have qualified to receive benefit payments: 6,878

Gender of Claimant:  59% Female – 41 % Male

Marital Status:  51% Married – 41% Not Married – 8% Unknown

Average Age at Policy Purchase:  64

Age at Time of Claim:  Mean: 81     (Range 31  to 103)

Amount Paid To Date: Least ($19) – Most ($2,647,545)

Type of Service (top categories only)
Home Health Aide – 53%
Nursing Home – 27%
Assisted Living Facility – 29%
Skilled Nursing (Home Visit) 7%

Data from CT Partnership for Long-Term Care statistical report published September 16, 2024.

The post Latest Data for 2024 Long Term Care Insurance Claims appeared first on American Association for Long Term Care Insurance.

“Women are more likely to need long-term care because they generally live longer lives,” explains Jesse Slome, AALTCI’s director. “Among women, 61% are likely to develop a chronic disability often simply due to living a long life.”

The Association director was sharing data about long-term care need and length of paid long-term care services with senior specialists who help educate consumers about the risk and need.

“Some 51 percent of women age 65 and over will need paid long-term care before they die,” Slome shared. “Meanwhile only 39 percent of men age 65 or older will need such care.”

Married people are less likely to need paid long-term care services Slome reported. “Again, it’s 51 percent of unmarried people over age 65 who will require paid long-term care in their lifetime,” Slome shared. “Whereas it’s only 43 percent for married people, part of which is likely that the healthier spouse becomes the caregiver.”

The long-term care insurance expert and advocate noted that long-term care insurance planning was off the radar during the pandemic. “We have a new generation of men and women entering the long-term care planning sweet spot. “They need information including facts and figures to understand the potential future financial risk they face,” Slome added.

To read the latest long-term care need data go to https://www.aaltci.org/long-term-care-need/.

The American Association for Long-Term Care Insurance (AALTCI) https://www.aaltci.org advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions. Access comprehensive long-term care insurance statistics and data at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2024.php.

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“If you live a long life the chances are very high that you’ll eventually require care,” explains Jesse Slome, director of the long-term care insurance organization. ”When long-term care services are needed most people depend on family members or loved ones, while others have to pay from their retirement savings or income. A small percentage of people today have purchased long-term care insurance to pay for their care.”

Long-term care insurance policies were first introduced in the 1980s and now protect several million aging Americans’ “You must secure this insurance protection when you are still able to health qualify,” stresses Slome. The ideal time to apply is between ages 55 and 65, the long-term care insurance expert points out.

“You are buying protection for your future,” Slome explains. “While some people start using their policy benefits relatively soon after buying, typically as a result of an accident or illness, most won’t qualify for policy benefits for a number of years.”

According to data just released by the Association, just over a quarter (27%) of new long-term care insurance claims begin when policyholders are between ages 80 and 84. For the first time, the organization was able to compare data for traditional long-term care insurance as well as linked-benefit long-term care. The latter typically consists of life insurance or annuities that can also provide a long-term care benefit.

“Each year the nation’s long-term care insurance companies pay out billions in benefits to seniors with this valuable coverage,” adds Craig Matesky, President and CEO of ACACIA Insurance Services. “Today, there are multiple long-term care insurance options that are affordable and more important will cover you for home care, assisted living, nursing home or memory care.”

Access the latest 2024 long-term care insurance statistics and data on the Association’s website at 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 planning and supports insurance professionals who market both traditional and hybrid LTC solutions. Jesse Slome is director and also directs the American Association for Medicare Supplement Insurance.

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“Mutual of Omaha, Northwestern Mutual and New York Life all reported more covered lives than a decade ago,” shares Jesse Slome, director of the long-term care insurance organization. “Unfortunately, companies that were once leaders in the industry have long ceased offering new policies and, as a result, their lives in force have decreased over the same period.”

According to Slome and analysis reported in 2023, Mutual of Omaha and Northwestern Mutual both had 100,000 additional covered lives compared to what they reported in 2013. The largest company in terms of covered long-term care insurance lives, Genworth a top long-term care insurance provider, reported about 200,000 fewer lives in force for the same period.

“It is important for consumers as well as insurance professionals to understand that even when a company ceases offering new policies, existing policies stay on the books and are serviced when claims are filed,” Slome adds. “The past decade has definitely been difficult for some insurers offering traditional long-term care insurance. But, it is important to recognize that some insurers have reported growth.”

For example, Slome notes that Mutual of Omaha which had 110,664 lives in force as reported in 2013, reported 212,213 lives a decade later. “Some may view this as slow growth but it’s quite the contrary,” Slome explains. “While long-term care planning is something every aging American should undertake, long-term care insurance is a viable option for a specific and rather small segment of the overall population.”

Top Long-Term Care Insurance Companies Report – See Complete Data

Access the complete data regarding leading long-term care insurers lives in force at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2024.php#LongTermCareInsurers-Lives.

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. Access the latest long-term care insurance statistics at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2024.php.

The post Three Top Long-Term Care Insurance Companies Grew Over Past Decade appeared first on American Association for Long Term Care Insurance.

“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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Costs for traditional long-term care insurance coverage are level compared to the prior year according to the 2024 Long-Term Care Insurance Price Index released today by the American Association for Long-Term Care Insurance.

“In some cases, prices decreased a little compared to the prior year,” states Jesse Slome, directory of the national organization that advocates for the importance of long-term care planning. “The declines were minimal and there were a few instances where costs rose but again the increases were nominal.”

According to the organization’s 2024 Price Index report, a couple, both age 55, who each obtain long-term care protection valued at $800,000 (total) for their needs at age 85 can expect to pay around $5,000 annually.

“This couple could pay as little as $2,080 combined if they opted for policies that did not include any future growth of benefits,” Slome acknowledges.  “Adding a 3 percent annual inflation growth factor increases their cost to $5,025-per-year. Selecting coverage that will grow at 5 percent annually increases their cost to almost $8,600 annually.”

While prices for traditional long-term care insurance offerings remained relatively level, the same was not true for linked benefit policies.

“Costs for linked benefit products are substantially lower compared to a year ago” reports the long-term care insurance expert.  “The linked-benefit market is more competitive and life insurers clearly are looking to capture more premium. Rising interest rates provided them with an opportunity to offer reduced premium costs,” Slome explains.

According to the 2024 Long-Term Care Insurance Price Index, a single 55-year-old male purchasing a life plus LTC policy providing around $520,000 of potential long-term care benefits at age 90 could expect to pay $5,022 in annual premiums. The Association’s 2023 Price Index reported that same coverage would have cost $5,600. Access the 2023 LTC Price Index at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2023.php.

The American Association for Long-Term Care Insurance ( https://www.aaltci.org ) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions. To learn more or to connect long-term care insurance specialists visit the organization’s website or call 818-597-3227.

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Click to access 2024 Long term care insurance statistics

Costs for linked benefit long-term care insurance coverage are lower than a year ago according to the 2024 Long-Term Care Insurance Price Index released today by the American Association for Long-Term Care Insurance.

“Great news for aging individuals who are thinking about their risk of needing care one day,” states Jesse Slome, director of the long-term care insurance organization. The 2024 Long-Term Care Insurance Price Index is the organization’s annual compilation of costs for both traditional and linked benefit long-term care insurance.

”Interest rates are significantly higher than a year ago and that has enabled some insurers to reprice their products,” Slome explains. “Someone applying for new coverage in 2024 can obtain more coverage for less cost than basically the identical coverage purchased a year ago.”

According to the 2024 Price Index, a single 55-year-old male purchasing coverage that would provide around $520,000 of potential long-term care benefits at age 90 could expect to pay $5,022 in annual premiums. The same coverage would have cost $5,600 according to the Association’s 2023 LTC Price Index.

“Savings were higher for women according to our analysis and those who paid for coverage with a single lump sum would enjoy greater savings this year,” Slome added.

“There are more insurers offering various types of linked benefit products that combine life insurance with the potential for long-term care benefits,” Slome explained. “There are significant differences between many of these products and going on price alone or just a single recommendation from your financial representative isn’t always the best course of action.”

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 learn more or to connect with linked-benefit long-term care insurance specialists visit the organization’s website or call 818-597-3227.

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Click to access 2024 Long term care insurance statistics

The annual Long-Term Care Insurance Price Index was pre-released today by the American Association for Long-Term Care Insurance.

“People have many misconceptions about long-term care insurance and we post data to help them better understand what can be a confusing topic,” states Jesse Slome, director of the long-term care insurance organization.

The 2024 Long-Term Care Insurance Price Index is the organization’s annual compilation of costs for both traditional and linked benefit long-term care insurance.

“First, prices for traditional long-term care insurance can vary significantly depending on which insurance company you select,” Slome points out. “You generally only buy this protection once so selecting the right insurer is of upmost importance.”

The long-term care insurance expert pointed out that the vast majority of long-term care coverage purchased in 2023 consisted of linked-benefit policies. “Consumers like the ‘don’t use it – don’t lose it’ aspect of a life plus LTC policy,” Slome agrees. “But it’s not like this comes without a cost.” The 2024 Price Index attempts to compare premium costs for virtually equal coverage under both options.

The 2024 Long-Term Care Insurance Price Index along with other statistics and data can be accessed via the Association’s website at 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 planning and supports insurance professionals who market both traditional and hybrid LTC solutions. Jesse Slome is recognized as a leading long-term care insurance expert at https://www.aaltci.org/for_media/.

To learn more or to connect with long-term care insurance specialists visit the organization’s website or call 818-597-3227.

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