“With linked-benefit policies now outselling traditional long-term care insurance, consumers are requesting more meaningful price and benefit information,” explains Jesse Slome, AALTCI’s director.  ”The organization annually reports price information for traditional long-term care insurance.”

“Linked-benefit long-term care policies are different from traditional LTC policies,” Slome stresses.  “Prices vary of course but the more significant difference is the value of future benefits.”  The 2022 Linked Benefit Long-Term Care Price Index reports and compares a combination of premium costs as well as future available long-term care and life insurance payouts.

The analysis reports information for both men and women purchasing coverage at ages 55 and 65.  Four of the nation’s leading linked-benefit insurance companies were analyzed (without providing specific company names).  The analysis only included policies filed as IRC 7702B linked-benefits.

Two Examples For A 55-Year-Old Male

Yearly Cost:   (A)  $6,100/year   -   (C)  $5,235/year
Maximum LTC Benefit at Age 85:   (A) $753,627   -   (C)  $568,801
Death benefit (at Age 100):   (A)  $274,405  -    (C) $240,804

Two Examples For A 65-Year-Old Female

Yearly Cost:   (A)  $13,048/year   -   (C)  $12,368/year
Maximum LTC Benefit at Age 85:   (A) $560,796   -   (C)  $482,400
Death benefit (at Age 100):   (A)  $456,674  -    (C) $456,236

“The future potential benefits can vary from one insurance company’s policy to another,” Slome explained.  “Selecting the right coverage is a lot more complex than simply looking for the lowest premium cost.  And since it almost never pays to drop and replace coverage, making the right initial plan choice is of paramount importance.”

Linked-benefit policies are typically life insurance policies designed to pay a death benefit if none or only some long-term care benefits are paid out.  “Here again, the maximum death benefit for someone buying at age 55 varied from a low of $100,000 to as much as $274,405.”

The Association director stressed the importance of comparing coverage before buying. “With their growing popularity comes a need for increased consumer education,” Slome advises.  “we will be spending far more attention on this subject.”

To access the 2022 Linked Benefit Long-Term Care Price Index information, go to https://www.aaltci.org/linked-benefit-price-index-2022/.

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 linked-benefit LTC solutions.  To access the latest long-term care insurance statistics regarding 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 www.aaltci.org.

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combination long term care insurance policy comparisons from AALTCI

Los Angeles; November 12, 2013 – An analysis revealing significant differences between the most popular combination long term care insurance policies helped generate widespread national news this week for the American Association for Long Term Care Insurance.

“We’ve seen an increase number of consumer inquiries about combination life insurance policies offering long term care insurance like benefits,” declares Jesse Slome, director of the American Association for Long Term Care Insurance.  “Our conversations revealed that consumers assumed these policies are all very similar in terms of key components, especially the amount of benefits they ultimately provide.  There is lots of interest in what many call ‘new and improved long term care insurance’ but there can be vast differences in ultimate benefits paid.”

Working with leading independent experts, the Association undertook an analysis of leading combination long term care insurance, also known as hybrid long term care policies.  “We found significant differences,” says Slome. “Some would pay far more if long term care services were needed, others had a higher life insurance benefit that would be paid to heirs.”

A release distribution of the analysis resulted in widespread media attention.  “Several hundred major media picked up the story including Yahoo Finance, The Wall Street Journal’s MarketWatch column, Reuters and some 200 newspapers, business journals and local television stations,” Slome reports.  “There has been a high level of interest in this as more consumers are being told about combo LTC products by their financial advisors.”

The Association’s analysis pointed to the value of getting a comparison from a knowledgeable combination long term care insurance specialist.   ”Not all financial advisors have access to products from multiple companies,” Slome adds.  To learn more about combination long term care insurance or obtain comparison quotes  from a specialist call the organization at (818) 597-3227 or visit their website at www.aaltci.org.

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