“Just over 76 percent of new buyers of a long-term care insurance policy do so after turning age 50 and before they turn 70,” AALTCI’s director shared with insurance professionals who market the protection.  “It is important to understand the marketplace in order to know how to effectively communicate with prospective buyers.”

Slome shared that most buyers today are between ages 55 and 59 (24.7%) or between 60 and 64 (23.2%).  “The sweet spot for buying traditional health-based long-term care insurance is between 55 and 65, before you go onto Medicare,” Slome noted.

“Once on Medicare, many individuals take advantage of the excellent health preventative tests ad covered doctors visits, which is a good thing because these exams often detect problems that can be addressed,” Slome explained.  “But, the exams also can uncover conditions that may make it impossible for an individual to health qualify for long-term care insurance.  That’s why we urge action prior to reaching Medicare age.”

Slome urged planning for long-term care begin prior to age 65.  “There are many reasons to plan prior to turning age 65,” Slome explained.  “If you want long-term care insurance to be an option, meeting the insurer’s health qualifications is more difficult after 65 and, of course, insurance is less expensive if you lock in coverage at younger ages.”

Data on long-term care insurance sales by issue age as well as the most recent data on benefit period selected was posted on the Association’s website and 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.

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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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“It is important for consumers to understand the importance of their need to address the very real risk of needing long term care but misleading or deceptive information is in no one’s best interest,” declares Jesse Slome, executive director of the national long term care insurance industry trade group.  Slome was sharing insights with professionals who market long term care insurance.

“I keep a rogues’ gallery of misleading information that repeatedly appears in news articles,” Slome shared with the group.   ”They may all be true but often they have zero relevance to long term care insurance and linking the two together is not appropriate way to appropriately educate the public.”  Slome shared three fallacious facts:

“It’s common to read that 40 percent of those needing long term care are under age 65,” Slome says.  “This is a government statistic which includes everyone born with birth defects and severe disabilities, mental issues and other issues.  There is no relevance to long-term care insurance which requires applicants must health qualify for insurance coverage.”

“People start buying long term care insurance in their 50s to address the real risks of needing care as a result of aging, dementia or conditions that generally start after age 70,” Slome explained.  “Of course, accidents and disabling diseases can begin at younger ages but not to the degree the 40 percent statistic implies.”

“A second fallacy is that one needs to protect the full cost of care by showing large scary numbers,” Slome says.  “You see reports that say three years in a nursing home will cost $200,000 and that may be true but most people buy long term care insurance to receive care at home.  Those costs can be far more affordable and every article neglects to mention you should use some of your savings to pay some of the costs.”

According to the long term care insurance expert, over two-thirds of new claims begin with home care.  “You’re likely to receive ‘wake up – tuck in’ services for a few hours which can be fully covered by a modest long term care insurance policy,” Slome adds.  “And, don’t overlook retirement income including Social Security which can be used to pay some of the cost augmented by your insurance.”

Slome noted that many articles overstate the cost of long term care insurance.  “Reporters tend to talk to the same small group of experts, often those who have wealthy clientele or they quote industry averages which mislead many into thinking coverage is expensive,” Slome concluded.  “It can be if you are older, if you have health conditions or if you buy a Cadillac policy.  But it does not have to be and half of all buyers pay less than the average, some significantly less.”

Working with an experienced long term care insurance professional is advantageous because both costs and policy provisions vary significantly.  “We define a specialist as someone who has helped 100 or more people get long term care insurance,” Slome explained.  “A consumer can pick who they work with but those we speak with share that specialists provide them with far greater information relevant to their situation and typically better choices for options.”

For additional information or to request long term care insurance costs and information connect with a designated long term care insurance specialist who is a member of the Association by calling the organization at 818-597-3227 or visiting their website.

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long term care insurance facts statistics in 2014 LTCi Sourcebook

Los Angeles; August 20, 2013 – The overwhelming majority of individuals who purchased a new long term care insurance policy in 2012 did so before turning age 65 according to findings reported by the American Association for Long-Term Care Insurance.

“The age of long term care Insurance buyers has been steadily dropping,” reports Jesse Slome, executive director of the national long term care insurance industry trade group.  The organization published the findings as part of their 2014 Long Term Care Insurance Sourcebook.

According to the organization’s research, over half (54.0%) of new buyers were between the ages of 55 and 64.  “We explain that the sweet spot for looking into long term care insurance is between your early 50s and age 64 prior to qualifying for Medicare,” Slome explains.  “It’s your health that matters much and with each passing year it is increasingly likely that your health will change.”  Slome notes that insurers underwrite candidates and will charge more or deny coverage to those with concerning health conditions.

“People mistakenly believe that everyone can get long term care insurance at any age and that simply is not true,” Slome explains.  “To keep the costs of coverage as low as possible for those who purchase coverage, insurers are selective and will look at medical records.”

The Association research is being published in the 2014 Long Term Care Insurance Sourcebook which contains both special studies conducted by AALTCI as well as summaries of other key industry studies.  The Sourcebook will be mailed to all Association members around October 1 and single copies can be purchased for $99.

For additional information or to obtain a copy, call the organization at 818-597-3227.   Consumers seeking long term care insurance costs and information can access free long term care insurance guides on the organization’s website.  No sign-in information is required to access the guides.  To learn more or to be connected with a designated California long term care insurance specialist call the organization at 818-597-3227 or visit their website.

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“Long term care planning is vitally important today because Americans are living longer and government and company retirement benefits are diminished,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the industry trade group.   “While we are educating millions of consumers about the risk, we also have to educate more insurance professionals so they understand how to effective approach their clients with the right information and the right messaging.”

Too few insurance agents understand what consumers know and don’t know about long term care insurance, including the reasons people decide to purchase coverage.  According to Slome, one of the nation’s leading long term care insurance experts, the fact that costs for coverage increases if they delay the decision was the number one factor influencing the decision to act.

“Once people understand that the long term care insurance cost they will only increase the longer they wait, they understand the importance of acting now,” Slome explains.  “Costs increase because they are tied to the age at which you apply so someone age 52 will pay more that someone age 50 for equal coverage,” Slome notes.  “In addition, as a result of the historically low interest rates virtually every long term care insurance company has been raising rates on their new policies.”  Once coverage is purchased, an insurer generally can only raise rates on an entire class of policies and often only following approval from the State Department of Insurance.

Over half of those who replied to a national study of long term care insurance buyers explained they purchased because ‘they thought the cost of insurance would increase in the future.’  “More insurance professionals need to understand this so they can explain why rates increase and help their clients make decisions at a point in time when they can still afford premiums,” Slome adds.

Other reasons consumers give for deciding to purchase coverage included they ‘thought it was a good idea to have it (long term care insurance) right now’ and ‘I could afford it now’.

The American Association for Long Term Care Insurance was established in 1998 to advocate for the importance of planning for long term care and to support insurance and financial professionals who market LTC insurance.  To learn more about long term care insurance costs call the organization’s offices at (818) 597-3227 or visit the Association’s website.

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“We receive hundreds of inquiries each month from individuals confused about when to apply for this protection,” explains Jesse Slome, executive director of the Association.  “They hear wait until after retirement or start when you are 40.  It’s no wonder that people are confused and miss a most important fact about when to start the process.”

The Association created two new videos to help address important questions often raised by callers and those visiting the Association’s website.  “We just don’t have enough time to spend with each person answering their questions, so we attempt to address them all with short educational videos that are accessed via the Association’s website,” Slome notes.  According to Association data, the organization’s website gets as many as 45,000 visitors monthly seeking information.
The first of the two just-added videos focuses on the best age to apply for coverage with statistics from the organization’s 2012 Long Term care Insurance Sourcebook.

A second consumer video focuses on tips and techniques consumers can utilize to obtain the best long term care insurance coverage for the most affordable premium.  “You only buy this protection once so you had better do it correctly,” Slome adds.  “Our mission is focused on bringing real, current and relevant information to consumers.  An educated consumer is a long term care insurance professional’s best prospect.”

The two videos can be viewed online.  The following are the links to the programs.

Best Age To Buy Long Term Care Insurance

Get The Best Cost For Insurance For Long Term Care

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“Rates for home health care have remained relatively stable over the past few years,” explains Jesse Slome, executive director of the organization that represents several thousand long term care insurance professionals.  “However, costs can vary significantly from one market to another and even among service providers within a particular locale.”

Home care service costs compiled by the Association have been published in the 2012 Long Term Care Insurance Sourcebook dramatize the spread.  Boston had the highest hourly rate reported for a home health aide ($39) while Dallas / Fort Worth reported the lowest ($12).

According to the Association, half (50.0%) of all new long-term care insurance claims opened during 2011 began with the policyholder receiving care at home.  Less than one-third of new claims began with the recipient receiving care in a nursing home the Association reports.

“Long-term care insurance has really become nursing home avoidance protection,” Slome explains.  “Today, people purchase this important protection in order to receive care in their own home for as long as possible.  When costs remain stable, people are able to purchase more affordable levels of insurance coverage that will pay for longer periods of time.”

The following is a sampling of home health aide hourly rates from the Association’s 2012-2013 Long Term Care Insurance Sourcebook provided free of charge to the organization’s members.

Average           Low           High

Atlanta, GA          $21                  $16            $24
Boston, MA         $27                  $21            $39
Chicago, IL            $23                  $16            $30

Los Angeles, CA   $21                  $14            $28

New York, NY       $20                   $16       $23
Seattle, WA            $24                  $20      $28

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According to annual research conducted by the American Association for Long-Term Care Insurance women comprised just over 60 percent of new buyers the study found.

“Linked life insurance policies that offer long-term care benefits experienced significant growth in 2010,” states Jesse Slome, the national trade organization’s executive director.  “Consumers are finding these products offer a significant advantage when it comes to long-term care planning.”

Newer life insurance policies offer the ability for the policyholder to access funds should a need for long-term care occur.  “For those with sufficient savings to purchase coverage, these new forms of protection help overcome the what if I don’t need long-term care,” Slome explains.  If the policy benefits are not used for long-term care, the designated beneficiaries receive the death benefit.

According to data published in the Association’s 2011 Long-Term Care Insurance Sourcebook, over one-third (34%) of women who purchased new life+LTC policies in 2010 were between ages 55 and 64.  Nearly 40 percent were between ages 65 and 74.    Male purchasers tended to be slightly older Slome acknowledged.

“You need to have a fair amount of savings or what I call lazy money,” Slome explains.  “Lazy money consists of funds sitting in low-paying Certificates of Deposit that can be easily put to far better use on your behalf.”

The single premium face amount of just over two-thirds of new policies purchased in 2010 was over $100,000.  About a quarter of buyers opted for a face amount of over $200,000.

The complete findings are published in the Association’s 2011 Long-Term Care Insurance Sourcebook that can be obtained from any of the organizations 3,000 members.   Slome advises consumers considering long-term care insurance to carefully compare coverage with a knowledgeable professional.  ”Costs for virtually identical coverage can vary by as much as 40-to-60 percent,” he warns.

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