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.

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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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“The new tax will cost Washington workers starting next year and many are looking into long-term care insurance as a way to avoid the tax,” explains Jesse Slome, director of the long-term care insurance organization.  ”Insurers realized that many individuals were likely buying low amounts of coverage and others intend to drop coverage once they achieve their goal of tax exemption.”

As a result, insurers have just issued new minimum levels of required protection and new procedures.  “It generally costs an insurer between $600 and $800 to health underwrite and issue a policy,” Slome explains.  “In addition, insurers pay commissions to the selling agent all of which are only recouped when a policy remains on the books for several years.”

According to Slome, Mutual of Omaha will automatically decline applications from individuals who have not been seen by a physician in the last 24 months.  In addition, the company will do a chargeback on commissions paid on policies issued through November 1, 2021 that are lapsed within the first policy year.

“Increasingly agents are telling us they do not want to spend time with consumers looking for a policy explicitly to avoid the tax,” Slome notes.  “While the State regulations do not currently require coverage be in place next year, I fully expect subsequent State-amendments will address this after legislators realize they left a loophole.”

A second carrier, National Guardian Life (NGL), has set the policy minimum Daily Benefit Amount at $100 for Washington residents.  Applications with a $50-to-$90 benefit amount selected will not be accepted by the company.  In addition, applicants must choose an inflation option and those opting for facility only benefits will not be accepted.

“NGL is also requiring that applicants have been seen by a physician within the past 24 month,” Slome notes.  “That will limit younger applicants in their 30s and 40s who often do not get regular physical examinations.”  The company will also chargeback paid commissions if premiums are not paid for the second year of coverage.

According to Slome, a 45-year old Washington male selecting a $100 daily benefit with no inflation growth would pay around $361 annually.  “Adding the 3% inflation option raises the cost to $794 and selecting the 5% option takes it to $1,751,” he says.  “For a 45-year old female selecting the 3% inflation option the annual premium cost will be $1,304.”

The new Washington tax adds an uncapped payroll tax of .58% on all wages beginning January 1, 2022.   “Someone earning $150,000 yearly will pay $870 in added taxes,” Slome shares.  “The new insurer rules have changed what we share with consumers.  I would say that $125,000-to $150,000 in annual income is the minimum threshold where considering private long-term care insurance makes sense.”

Changes imposed by Thrivent include increasing the minimum issue age to 40 for Washington residents as well as increasing the minimum monthly benefit to $3,000.  “In this case, a 45-year old male picking a $3,000 monthly benefit with 2 years of coverage will pay $351 yearly,” Slome explains.  “Many agents are going to advocate for at least a 1% inflation growth option which raises the cost to $460 yearly.”

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 costs from a Washington specialist call the organization at 818-597-3227 or visit their website.

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According to the just-released 2019 Long-Term Care Insurance Price Index for individuals age 60, prices for coverage can vary significantly.  “We found a spread of over 100 percent between the lowest priced coverage from a top-rated insurer to another,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance.  “Once again, it reveals the importance of comparison shopping and working with a knowledgeable long-term care insurance specialist.”

According to the Association’s 2019 Price Index, the average annual premium for a 60-year-old couple was $3,400.   ”That may sound like a lot but each spouse would have nearly $400,000 available for their care at age 90,” Slome notes.  “These policies included an option that increases the benefits by three percent annually.  If the consumer selects a lower annual growth option, say 2 percent yearly, the cost of insurance would be lower.”

Married couples often benefit from a significant spousal discount, Slome explained.  According to AALTCI studies, married couples or older adults living together purchase the majority of long-term care insurance policies the Association director notes.

The long-term care insurance expert recommends consumers consider some advantageous planning and savings strategies.   “There are smart ways to protect yourself and save money,” Slome explains.  “For example, married couples should ask if a shared care option is available.”  This option enables one spouse to use the benefit pool of the other.  “Accepting a two (2) percent inflation growth option instead of the three (3) percent can save nearly 20 percent yearly,” he adds.  These features are not offered by all insurers the Association director points out making comparison shopping vital.

The Association’s website offers consumers free access to informational guides on long-term care planning.  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/long-term-care-insurance/free-quote/.

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Jesse Slome, leading long term care insurance expert, director AALTCI

November 21, 2014 – A national news story distributed today features the American Association for Long-Term Care Insurance director shares questions consumers should ask when starting their long term care planning.

“We handle hundreds of calls each month from consumers who don’t know where to begin the process of long term care planning,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  “Often they’ve read highly misleading information on the Internet and they are more confused than educated.”

One of the nation’s leading long term care insurance experts noted that planning is as unique as the individual.  “Each one of us is different, has a different approach to financial matters and a different family situation so an off-the-shelf approach to long term care planning is not a good idea,” Slome adds.

As a result of conversations with hundreds of consumers embarking on long term care insurance planning; Slome shared tips on questions to ask at the onset.  “There are questions to ask yourself and questions to ask the insurance or financial professional you chose to work with,” Slome says.

A national news report containing Slome’s comments has started appearing in media across the country.  “We do what we can to heighten understanding on this complex topic in an honest and straightforward way,” he notes.  “Asking good questions is a most important component of getting the right plan for yourself or your family.”

To see some of the key media reporting the Association director’s comments, click these links:

MarketWire
http://www.marketwired.com/press-release/Long-Term-Care-Insurance-Savings-Depend-on-Asking-the-Right-Questions-1970746.htm

Morningstar
http://ndwebfiles.marketwire.com/NDWebFiles3/content/2014/11/21/1160694//cache/127328742.htm

Yahoo Finance
https://uk.finance.yahoo.com/news/long-term-care-insurance-savings-151800878.html

Arizona Republic
http://ndwebfiles.marketwire.com/NDWebFiles3/content/2014/11/21/1160694//cache/127328753.htm

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virtual virtual insurance conferences and expos hosts first long term care insurance Summit

Los Angeles; December 10, 2013 – The American Association for Long-Term Care Insurance and Financial Social Media announced today a cooperative sponsorship arrangement for the 2014 National Long-Term Care Solutions Sales Summit.

“The nation’s leading long term care insurance industry conference is entering the online interactive age and we couldn’t think of a better partner to work with,” declares Jesse Slome, director of AALTCI, the national trade group.

For the first time, key sessions from the LTC sales conference will be broadcast live online available free-of-charge to agents not able to attend.   “We expect 5,000 insurance agents and financial professionals will view the free live streamed Summit sessions,” Slome shares.  “Social media will play an integral role in creating awareness and heightened participation.”

“Social media can be used to achieve strategic goals for a business and we are proud to help create high levels of awareness for this significant educational initiative undertaken by the American Association for Long-Term Care Insurance,” shares Amy McIlwain, president of Financial Social Media.  McIlwain will conduct a 75-minute session at the conference, “Using Social Media To Generate Increased Referrals, Awareness and Retention.”

The 2014 Long-Term Care Solutions Sales Summit takes place May 18-20, 2014 at the West

in Hotel in Kansas City.    The three-day program includes nearly 40 workshop sessions focused on the marketing and sale of traditional long-term care insurance as well as hybrid or asset-based LTC solutions.
Free online access to view selected sessions will be available to insurance agents and financial professionals who pre-register for the special online access. Complete information on attending the Summit in-person or the free online access to streamin

g sessions can be accessed via the Association’s website at www.aaltci.org/2014summit or by calling 818-597-3227.

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Between 40-and-60 percent of the dollars an insurance company accumulates to pay future claims as well as costs comes from the premiums paid annually by policyholders.  “The rest, roughly half, comes from investment return from bonds and other instruments,” Slome notes.  “When yields drop as they have over the past few years, insurers have to charge more for policies and you reach a point where you simply price a feature out of the reach of people.  No one sells cars today that get 10 miles per gallon because no one would buy them, and the analogy is similar.”

The nation’s long term care insurance expert explains that long term care insurance policies have changed since being introduced in the late 1980s.  “The original versions only paid for nursing home care, while today most pay benefits for care in one’s own home or assisted living communities,” Slome adds.  “Things change, economies change and when interest rates rise again one day I would expect to see that impact the design of long term care insurance coverage being offered.”

Consumers who desire longer periods of benefits today can still purchase coverage to achieve that.  “Couples can each purchase a policy providing 10-years of benefits and add a shared care option which effectively yields a 20-year plan of protection,” Slome notes.

When considering longer duration policies which are always the most expensive, the Association advises consumers seek out a knowledgeable long term care insurance professional designated by the Association.  To connect with one call the Association’s Los Angeles-based national headquarters  at (818) 597-3227.  You can also access informative guides authored by Slome on reducing long term care insurance costs via the Association’s website.

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According a study of new buyers conducted annually by the American Association for Long-Term Care Insurance a growing percentage are choosing newer growth options including one that increases benefits by three percent annually.  “You want your coverage to grow to keep pace with anticipated increased costs over time,” explains Jesse Slome, executive director of the national trade organization.

Historically, the most popular option increased future benefits by five percent, Slome notes.   “Today, three percent is becoming the new five percent because consumers are finding it a far more affordable and therefore attractive option.”  The long term care insurance expert explains that costs for coverage and benefit increase options are closely tied to interest rates.  “With interest rates at near zero with no one predicting any change in the next few years, how can you increase benefits at five percent and keep the premiums affordable?” Slome asks.  “As a result, newer options which benefit consumers are being offered.”

The Association study found that 23.5 percent of new buyers opted for the three percent compound growth option in 2011 up from 16.7 percent during the prior year.   The percentage of those selecting the old-style five percent growth option declined from 42.8 percent to nearly 34 percent.

The need to plan for the eventual risk of needing long term care is vital for individuals over age 50 according to Slome.  “We tell people the risk they will need care is either zero percent or 100 percent and the question is, do you have a plan in place?”  Not all those who want to purchase insurance can do so according to the Association.  “You must be able to health qualify for this coverage and you must be able to afford the premiums,” Slome concludes.  “The newer options now available make it much more affordable for many more people who recognize the risk they face and want to prepare.”

For more information or to connect with a knowledgeable long term care insurance professional designated by the Association, call their Los Angeles national headquarters  at (818) 597-3227.  You can also access informative guides authored by Slome on reducing long term care insurance costs via the Association’s website.

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“Almost every day we hear from someone who is 85 looking for long term care insurance,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  “The vast majority wait until the need for care is imminent and at that point it is too late.”

Few long term care insurance companies will offer coverage to individuals past age 80 according to the Association.   “People with a need for care want to coverage but they can not meet the health requirements and applications were just a waste of time and cost for the insurers,” Slome notes.

According to the Association’s examination of long term care insurers offering coverage to those over age 80, a single individual who could meet the health qualifications could expect to pay around $11,000 per year for a policy that would pay around $164,000 in benefits.  The cost for a couple would be between $20,000 and $22,000-per-year combined for that level of coverage for each.

The average age for individual applicants today is 57 according to Slome one of the nation’s leading long term care insurance experts.  “We advise individuals that the sweet spot to look into this protection is between ages 52 and 64,” Slome says.  “Do it before you go on Medicare and start to partake in the various free health exams which are wonderful but can uncover health issues that preclude you from qualifying for long term care insurance.”

While few insurance companies today will accept applicants after age 80, Slome counsels consumers to always get a comparison quote.  “There is a whole lot more than price involved,” he notes.  “Some policies limit your ability to receive paid for care in your own home which is a reason many people obtain this coverage in the first place.”

For additional information from the Association call the organization’s national headquarters at 818-597-3227 or visit their website www.aaltci.org where consumers can also access a variety of free online consumer information guides, insurance company ratings and be connected with a designated long term care insurance professional.

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“The issue of long term care is especially important for women,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance.  “Today, women provide the majority of unpaid informal care often for their spouses, for their adult parents as well as others and they will also have the greatest need for care at some point in their own lives.”

To educate more women about the importance of long term care planning the Association plans to focus its attention during November’s Long Term Care Awareness Month toward educating women. Slome, who created the Month in 1991 designed to create heightened awareness of long term care-related issue, notes that the effort has received Congressional recognition as well as been declared by several Governors and Mayors.  “We specifically did not include the word insurance because this is a far more expansive issue and long term care insurance plays a rather small albeit important part,” Slome adds.

To assist women interested in learning more the organization has already posted a new five-minute educational video online.   “Long Term Care Awareness Month is a grassroots effort supported by those individuals and entities which share our commitment about this important matter,” Slome adds.  “We hope many take November as the opportunity to educate individuals, whether they focus on both men and women or just women.”

The Association holds its national Long Term Care Insurance Summit during the month.

Long Term Care Insurance is Good for America a campaign conceived by Barry Fisher and Jesse Slome for the LTC insurance industry

For additional information from the Association call the organization’s national headquarters at (818) 597-3227 or visit their website www.aaltci.org where consumers can also access a variety of free online consumer information guides.

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