2014 Long Term Care Insurance Sourcebook contains latest data and statistics

Los Angeles; August 1, 2013 –  Universal life insurance policies with optional long term care insurance are gaining consumer interest according to new research by the American Association for Long-Term Care Insurance.

“We are definitely seeing heightened interest among consumers with available savings that they can leverage to protect against the high costs associated with needing long term care,” explained Jesse Slome, executive Director of the American Association for Long Term Care Insurance.  “These policies are not for everyone and there can be significant differences between policies being offered today.”

According to a study by the Association more than half of buyers of life insurance with long term care benefit option policies were under age 65.  “Some companies have imposed age restrictions on these policies and that could be pushing down the age of average buyers,” Slome explained.  “It’s also likely that more stockbrokers and financial planners are starting to recommend these products to their younger clientele.”

A growing number of companies now offer life insurance policies that offer long term care benefits according to AALTCI.  “You used to have one or two major players but over the past few years several large insurance companies have introduced new products,” Slome noted.  “Consumers have the misperception that all policies are identical but we see some important differences that can vary.  The difference in future benefits can be quite significant.”

The AALTCI study reports that 56 percent of buyers in 2012 were age 64 or less.  The complete findings of the study will be included in the 2014 Long Term Care Insurance Sourcebook a compendium of industry research published by the trade group.  Copies of the Sourcebook cost $99.

To request a free, no-obligation policy benefit comparison from a designated life plus long-term care insurance specialist who is a member of the Association, call 818-597-3227.

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“Falls also account for many of the 200,000 claims currently being paid by the nation’s long term care insurance companies,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the industry trade group.   “Just as parents baby proof a house, adult children with parents over age 65 can take steps to fall proof their aging parents home which will prevent countless falls not to mention all the pain, suffering and cost.”

Indeed two new studies report that the number of falls can be reduced by roughly 30 percent and the number of people falling by about 20 percent.    Researchers reported that exercise that contains multiple components such as strength and balance training can be helpful.

An additional study recently published by researchers at the University of Otago in Dunedin, New Zealand projected that with the right interventions; the number of falls could be much lower.  Scientists looked at 159 studies with roughly 80,000 seniors who had been randomly assigned to a fall prevention program, a program not designed to decrease falls, or no intervention at all.

The researchers found that some interventions to treat vision problems, such as adjusting to new glasses, also increased the risk of falls.  They also shared that exercise, including Tai Chi, effectively cut the risk of falling.

Slome, one of the nation’s leading long term care insurance experts, noted that home safety assessment and modification was essential.  According to data from the Centers for Disease Control, nearly 38,000 Americans 65 and older are treated in ERs each year after tripping on a rug or a carpet. More than a third of the falls happen in the bathroom.

“If you have aging parents, help make their home fall safe by removing newspapers and books from the floor and stairs,” Slome advises.   “Get rid of small rugs or tape them to the floor and have grab bars in the bathroom plus non-slip mats in the bathtub.”

“We get many calls from adults with aging parents hoping they can buy long term care insurance but this must be done while you can still health qualify,” Slome explains.  “It’s too late for that but it’s not too late to help them live in a safer environment and we hope awareness motivates more consumers to act before an accident occurs.”

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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“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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A special workshop will be held to help insurance and financial professionals understand how to maximize the value of their insurance business and how to determine the best time to sell their block of long term care insurance policies.

According to Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the industry trade group,  the special session will focus on the current and future state of the market and provide valuable insights to insurance agents who have significant blocks of long-term care insurance business.

“Long term care insurance specialists who dedicate themselves to advising consumers and offering coverage may have hundreds of clients that they serve,” Slome explains.  “These clients comprise their business which has a value that others are willing to acquire, but determining value and the best time to sell is something that requires a fair amount of expertise.”

The special session will be part of the upcoming Tenth National Long Term Care Insurance Producers Summit that takes place November 10-12, 2012 at the Tropicana Hotel in Las Vegas.  Held every 18 months and organized by the trade group, over 500 long term care insurance professionals gather making this the largest industry conference exclusively produced on an independent basis for those who market and sell the increasingly popular insurance coverage.

“This workshop is just one of 30 special sessions available for attendees of the Summit,” Slome explains.  “Many independent insurance agents have been selling long term care insurance for 10 and even 20 years and are approaching retirement age.  Being able to sell their book of business could provide an ongoing income stream that allows them to retire and spend time with family and loved ones.”

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 the 2012 Long Term Care Insurance Summit call the organization’s offices at (818) 597-3227 or visit the Association’s website.

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“This is the first generation of Americans who are living longer lives thanks to medical advances but few are entering older ages in good health and that’s a problem,” declares Jesse Slome, executive director of the American Association for Long Term Care Insurance, the industry trade group.  “Unhealthy lifestyles cut lifespans and are resulting in large numbers of people who need long term care during the final years of their lives.  They are not prepared, their families are not prepared and the cost to taxpayers in the years ahead is something our budgets are not prepared for.”

The Swedish researchers from Stockholm University sought to find if healthy living positively affected people who were age 75 and older.  They followed nearly 2,000 individuals for 18 years, keeping records on their life choices, leisure activities and health matters.

While some 92 percent of the study’s participants died during the study period, half lives to more than 90 years old.  The researchers found that women, study participants who were more highly educated and those who maintained healthy lifestyles even through their older ages were most likely to live longer.

“Smokers died on average a year before non smokers,” Slome notes.  Individuals who smoke are not able to obtain special preferred health discounts for long term care insurance according to the long term care insurance expert.  The study did find that men and women who quit smoking earlier in their lives lived about as long as those individuals who had never smoked.

Exercise plays an important factor in longevity the study researchers report.  People who exercised on a regular basis lived two years longer on average than those who did not.  Those with the healthiest lifestyle including diet and weight, lived 5.4 years longer on average.

“We applaud studies like this because quite frankly no one seems ready to address the elephant in the room, the fact that obesity and poor health will bankrupt families and ultimately cost this country hundreds of billions of dollars,” Slome adds.  “Only a very small proportion of Americans have any plan in place to deal with the real risk and consequences of living a long life, let alone one that is a long unhealthy life.”

Long term care insurance has been purchased by over eight million Americans.  “Not everyone can health qualify for this coverage and not everyone can afford a private solution,” Slome admits.  The organization maintains the nation’s most comprehensive website containing the latest data from Association conducted studies of buyers and claimants with long term care.  To learn more about long term care insurance costs or to connect with one of the Association’s staff, call the organization’s offices at (818) 597-3227 or visit the Association’s website.

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“Americans are living long lives but few have prepared for the consequences that come with living into your 80s, 90s and even past age 100,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the industry trade group.  “When it comes to retirement planning, people get they can’t start preparing and saving for a comfortable retirement at age 60.  But, this is really the first generation to face the reality of living long lives and few have done any preparation for the consequences.”

The nation’s long term care insurance expert notes that after age 80 purchasing long term care insurance can be a daunting, almost impossible task.  “The major insurers have ceased offering coverage to those over age 80 because few people would agree to pay the premiums and even fewer could meet the health qualifications,” Slome explains.  “It is no different than trying to buy home owners insurance after your house has burned down.  You can’t get it.”

Several smaller insurers continue to offer long term care insurance policies to those over age 80.  “You can expect to pay $1,000 or more a month for coverage but considering you may be looking to get over $165,000 in benefits, that’s a considerable value,” Slome explains.  “But even those willing to pay this amount generally can not meet the health qualifications.”

“Long term care insurance is only available to those individuals who can health qualify,” Slome adds.  “This is done so to avoid having those who are in good health subsidizing rates for those who are in poorer health and are the ones most likely to begin claims sooner.”  Slome advises that the ‘sweet spot’ for looking into this protection is between ages 52 and 64.  “Do it before you qualify for Medicare and have access to preventative health screens that may uncover conditions which make it impossible for you to obtain long term care insurance or to pay higher premiums,” Slome concludes.

The organization maintains the nation’s most comprehensive website containing the latest data from Association conducted studies of buyers and claimants with long term care.  To learn more, request long term care insurance costs or to connect with one of the Association’s staff, call the organization’s offices at (818) 597-3227 or visit the Association’s website.

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“We are all procrastinators at hear but a failure to plan is a plan for failure,” declares Jesse Slome, executive director of the American Association for Long-Term care Insurance, the industry trade group.  The organization’s staff will be working on Labor Day to answer calls and inquiries from consumers seeking more general knowledge on the topic.

When it comes to needing long term care, few individuals have an understanding of their risk, the cost to their retirement savings or the impact on their family, Slome explains.  “Long term care insurance is one option people have but far too many people wait to inquire until the need is literally facing them at which point it is too late to health qualify,” Slome explains.

The organization maintains the nation’s most comprehensive website containing the latest data from Association conducted studies of buyers and claimants with long term care insurance protection.  “We encourage consumers over the age of 50 to start learning more and the Web is a great place to start,” says Slome.  “We work hard to provide the most current information because like everything else, things change so rapidly.  That’s also why we offer the ability to speak with a knowledgeable person.”

On Labor Day, the organization’s staff will field consumer inquiries.  “Most people want a sense of what long term care insurance will cost and, if they have some existing health issues, whether those will disqualify them from being able to purchase this protection,” Slome adds.  Those interested in actual rates from leading insurance companies offering this coverage will ultimately be connected with a knowledgeable professional who specializes in the field.  AALTCI is a national trade organization that does not sell long term care insurance but rather advocates on behalf of the importance of planning and conducts yearly research of value to consumers considering coverage.

To learn more or to speak with one of the Association’s staff, call the organization’s national headquarters at (818) 597-3227 or visit the Association’s website.

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“Some of the changes will increase taxes while others provide tax breaks or limit and change various tax benefits,” explains Jesse Slome, executive director of the American Association for Long-Term care Insurance, the industry trade group.  “A few could impact those who are considering or already own long term care insurance.”

Speaking to consumers and insurance professionals this week Slome shared that the significant increase in Medicare tax for those now considered ‘high income earners’ will have more self-employed and small business owners seeking ways to reduce income by taking advantage of the ever-shrinking world of meaningful deductible expenses.

“The tax deductibility of long term care insurance remains one of the best kept secrets not just among small business owners but among accountants and CPAs who rarely ask their aging clients if they have planned for this risk,” Slome declares.  While the tax deductibility rules vary by the form of business entity, tax incentives available at both the Federal and by many states make this protection one of the few tax deductions remaining.

“A business owner will find the ability to protect their retirement income and assets using pre-tax dollars highly attractive,” Slome advised.  “People are just starting to realize that the increase in Medicare tax could virtually equal the cost of protection and when you add in discounts now available even to small businesses, they are extremely interested.”

The long term care insurance expert noted that the floor on medical tax deductions raises to 10 percent from the current 7.5 percent of the person’s adjusted gross income.  “When people are healthy and working they generally don’t qualify for the medical tax deduction,” Slome acknowledges.  “But when they retire, often they have medical expenses and at that point the full cost of their long term care insurance premium could be fully tax deductible when they exceed the limit.”

To learn more about long term care insurance costs from the nation’s leading insurance companies connect with one of the Association’s professional members.  Call the organization’s national headquarters at (818) 597-3227 or visit the Association’s website.

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The average monthly cost paid last year was $3,350-per-month according to the 2012 Long Term Care Insurance Sourcebook a research compendium published by the American Association for Long-Term care Insurance, the industry trade group.  The cost represents a five percent increase over the prior year.

“For a growing number of aging seniors assisted living is the perfect way to get help with things like preparing meals, getting around and simple housekeeping chores,” explains Jesse Slome, executive director of AALTCI.  “If you need medical support or skilled nursing, that’s typically provided in a nursing home.”

The Association’s report found that monthly rates varied dramatically.  “Even within the same metropolitan area you’ll see significant variance in rates,” Slome points out.  For example, the Sourcebook reports that the lowest rate for Kansas City was $1,670-per-month while the highest was $4,700.

“While many people associate long term care insurance with nursing homes, the truth is that most new long-term care insurance claims pay for care in the person’s own home or an assisted living community,” Slome points out.  Less than a third (31%) of newly opened claims last year were for nursing home care according to the Association’s data.

The average age when someone moves into an assisted living community is 84.6 years and the average length of stay for all assisted living residents is 22 months.

“People today want choice and control about where they are going to live as they age,” explains Slome, one of the nation’s leading long term care insurance experts.  “They want to be as independent as possible for as long as possible and the benefit of having long term care insurance is that it provides the funds to permit just that.”

To learn more and to compare long term care insurance costs from leading insurance companies connect with one of the Association’s professional members who are licensed in multiple states.  “Only a broker who is appointed with multiple insurance companies is  going to provide free no-obligation comparisons quotes from the leading companies offering this protection,” Slome explains.  Call the organization’s national headquarters at (818) 597-3227 or visit the Association’s website.

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“Rates for identical long term care insurance coverage can vary by 10 percent or more depending on where you reside,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance one of the nation’s leading long term care insurance experts.  Slome was answering a question for a Tennessee resident planning an imminent move to New York.

“A comparison of costs for a plan providing roughly $165,000 of coverage found that he would pay roughly 13 percent less if he waited to apply in New York,” Slome advised.  “We explained he needed to speak with a knowledgeable expert licensed in both states so he could learn of any important considerations.”

According to the Association while most insurance professionals are licensed only in the State where they do business a growing number of long term care insurance professionals who specialize in the product are available in multiple states.  “A growing number of specialists will consult with people over the phone, something which many prefer compared to an in-home appointment with an insurance agent,” Slome adds.
The Association compared rates for three leading insurers offering policies in multiple states.  “The cost for coverage from one company was about $910-per-year for a 55 year old living in New York but $1,035 for identical coverage for someone in Tennessee,” Slome notes.  “Insurance companies today tend to require some proof of residency,” he adds, “for example, they will base coverage on the state issuing your driver’s license.”

To connect with one of the Association’s professional members who are licensed in multiple states and able to provide free no-obligation long term care insurance comparisons quotes and information on the topic all the organization’s national headquarters at (818) 597-3227 or visit the Association’s website.

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