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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“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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“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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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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“Claim benefit payouts for policyholders with traditional long-term care insurance coverage grew from $12.3 Billion in 2021,” reports Jesse Slome, AALTCI’s director.  “The increase in benefit payouts is expected as policyholders age and start to require care.” For calendar-year 2018 the Association reported that long-term care insurers paid out $10.3 Billion.

According to Slome, the amount reported represents claims for those owning traditional or health-based long-term care insurance.  “Data for linked-benefit policies is harder to calculate because there are so many different variations of these policies,” Slome acknowledges. “Certainly, some of these policies are paying out benefits for those needing long-term care but the value may still be nominal.”

For 2022, the Association reports that benefits were paid to about 345,000 policyholders. “This represents an increase over the prior year,” Slome shares. For 2021 AALTCI reported benefits were paid to 336,000 claimants. During the calendar-year 2018, AALTCI data reported 303,000 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.

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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“We are receiving an increased number of questions from consumers and hearing from more family members who are having difficulty getting claims approved for their aging parents,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance.  ”These are individuals who did the right thing and purchased insurance.  We want to do what we can to help make it easy for them to get the benefits they qualify for.”

According to the organization, the nation’s long-term care insurance companies paid out $12.3 billion in claim benefits in 2021.  “That’s over 336,000 very happy policyholders and families,” Slome declares.  “But it’s not always smooth sailing for everyone and we are hearing about more frustration as people report increased difficulty even getting through to claims departments for answers to simple questions.”

The Association will launch a new online claims resource.  “We’ll start with the most commonly asked questions we receive,” Slome explains.  “As people share other questions or pose issues, we’ll add answers and information as a benefit to others.”

Access Long-Term Care Insurance Claims Resource

Access the long-term care insurance claims information center via the organization’s website. To see a history of amounts paid for long-term care insurance claims go to https://www.aaltci.org/news/long-term-care-insurance-association-news/claims-paid-2021-grow-by-700-million.

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 LTC solutions.  To access the latest long-term care insurance statistics including need and insurance, visit the Association’s Data Center at www/aaltci.org/LTCFacts-2022/.

To obtain long-term care insurance costs from a long-term care insurance specialist call the organization at 818-597-3227 or visit their website https://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.

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“With so many couples, there’s often one spouse who is resistant, usually the husband,” explains Jesse Slome, director of the long-term care insurance organization.  “This new information will help those who have doubts understand the significant consequences and the benefits of this important protection.”

Slome was sharing data from a recently released study by Milliman Actuarial.  “When one spouse has a long-term care claim, the odds of a claim by the second spouse is four times higher than would normally be expected,” Slome shared with a group of long-term care insurance sales professionals.  Data comes from Milliman’s “Is Your Spouse Contagious” study.

Access the Milliman Couple Claims Report

Click here for the couple claims information.

“Following the death of a spouse who has been on a long-term care insurance claim, the odds of the second spouse needing long-term care within a year triples,” Slome adds.  “You tell that to all the recalcitrant husbands who tell their wives, don’t worry honey, I’ll never need care but you get some if you like.”

The Association director speaking to the group of long-term care insurance professionals noted that the Milliman analysis examined a pool of 50,000 long-term care insurance claims before the Covid-19 pandemic.

2021 Long-Term Care Insurance Statistics

See the latest long-term care insurance statistics and data posted by the Association.

“The need by the second or the surviving spouse was for both home care as well as facility care,” Slome pointed out.  “Consumers need to understand that long-term care insurance provides benefits.  And, that when insurers lower spousal discounts, as many are, there is a reason.”  The Association recently reported that insurers were reducing available spousal discounts when both partners obtain coverage from 30 percent to 15 percent.

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 call the organization at 818-597-3227 or visit their website at www.aaltci.org.

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“The information comes from one of the very few relevant studies of long-term care insurance so the insights are of enormous value,” explains Jesse Slome, director of the group.  Slome, who is the author of numerous consumer guides that focus on long-term care and retirement planning, was conducting a conference call with leading long-term care insurance specialists.

According to the Association director, the data comes from the October 2019 quarterly report issued by the Connecticut Partnership for Long-Term Care.  “Connecticut was one of the four original Partnership states and to the best of my knowledge is still the only one that regularly gathers and publishes relevant data.”  The other four original Partnership States were New York, California and Indiana.

“Perhaps the most interesting piece of information was the finding that the average time between the purchase of a long-term care insurance policy and the eligibility for claim is 161 months (13.4 years),” Slome noted.  The Connecticut report was based on a total of 4,351 aggregate claimants.  “While Connecticut is a small state, I suspect this data will be almost identical for the entire industry because it represents an aged block of business,” Slome commented.

The average age at the time of claim was 79, Slome shared with the professionals.  The mean age at the time of claim ranged from 31 to 99.

To access this and other long-term care insurance information, visit the Association website or go to www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2019.php

The Association estimates that some 60,000 Americans will purchase a new traditional long-term care insurance policy in 2019 and several hundred thousand will purchase a linked-benefit policy that offers long-term care benefits.  “Both are excellent ways to plan for the very real risk of one day needing care,” Slome shared with the group.

Headquartered in California, 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 quotes and policy comparisons.

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