“Premiums for buyers are virtually identical to last year; some are actually slightly lower,” reports Jesse Slome, director of the organization.  “However, the spread between the lowest and highest prices for basically identical policy coverage has grown.”

According to the annual analysis, a 55-year-old male purchasing $165,000 of immediate benefits could expect to pay $900 a year. In 2022, the organization reported premium costs of $950. This year, adding an inflation growth option that increased available benefit levels by 3 percent yearly would cost $2,100, a $100 decline from the prior year. “The additional cost reflects the fact that policy benefits will be worth over $400,000 at age 85 and even more if care is needed after that,” Slome explains.

Women continue to pay significantly more for long-term care insurance. “Costs for a 55-year-old female applicant purchasing the same level of benefits would be $1,500 and $3,600,” Slome shares. A year earlier the premiums reported in the analysis were $1,500 and $3,700 respectively.

The 2023 Long-Term Care Insurance Price Index reports available costs for men, women and couples at ages 55, 60 and 65. “We strive to show that there isn’t one fixed option and that coverage can be less costly than many people perceive,” Slome adds. “We show multiple levels of inflation protection which, while important, will significantly add to the yearly cost of coverage.”

Adding a 3 percent inflation growth option to base coverage tends to double the premium cost according to AALTCI. “It will be interesting to see how consumers now deal with concerns about future inflation,” Slome says. “And, will rising interest rates give one or more insurers incentive to actually lower premiums going forward?”

The most notable difference from prior reports is the spread in costs between the lowest and highest priced policies on the market. “In some cases, one insurer literally charges more than twice the cost of another for virtually identical coverage,” Slome reports. “I am not sure what accounts for such a significant difference but it reinforces our belief that in 2023 consumer should do comparison shopping before making a decision.”

To see the 2023 Long-Term Care Insurance Price Index information for traditional LTCi policies, go to https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2023.php. The organization will add comparisons for linked benefit policies later this month.

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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“In years past insurers often filed new rates for long-term care insurance,” explains Jesse Slome, AALTCI’s director.   “New rates were typically five to 10 percent higher, sometimes more.”

According to the Association’s annual Long-Term Care Insurance Price Index a 55-year-old male could pay $950 annually for a policy providing $165,000 of benefits.  A 55-year-old woman could expect to pay $1,500.  Both amounts are identical to the findings of the prior year’s price index.

“Prices for traditional long-term care insurance likely remain stable for a number of reasons,” cites Slome.  “First, insurers have a good sense of the most important factors that go into pricing this insurance.  In addition, investment returns have remained relatively stable.”  Insurers depend on investing premiums to accumulate funds to pay future anticipated claims.

The 2022 Long-Term Care Insurance Price Index reported that a couple both age 65 could expect to pay $3,750 combined.  The two policies could provide each with $165,000 of future benefits.  Adding an option that increased future benefits by three percent annually would cost the couple almost twice as much ($7,150 combined).

“Having some price stability is good,” Slome notes.  “However, consumers should not use that as a reason to delay investigating long-term care insurance costs.  What you’ll pay goes up each year you wait and one change in your health can prevent you from health-qualifying for coverage entirely.”

Data on long-term care insurance costs can be accessed on the Association’s website.  In addition, the Price Index compares costs for traditional long-term care insurance as compared to linked benefit options. To access, go to www.aaltci.org/LTCFacts-2022.

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.  These specialists can provide information along with long-term care insurance quotes and policy comparisons for both traditional and linked benefit long-term care insurance options.

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CLICK TO ACCESS 2022 Long-Term care Insurance Statistics

The 2022 price index for new long-term care insurance policies was published today by the American Association for Long-Term Care Insurance (AALTCI).

“Prices for new long-term care insurance have remained stable,” reports Jesse Slome, AALTCI’s director.   The annual report analyzes various standard policy levels for individuals who are ages 55, 60 and 65.

According to the 2022 Long-Term Care Insurance Price Index a traditional policy valued at $165,000 in benefits can cost $950 annually for a 55-year-old male.   The equivalent coverage for a 55-year-old woman is $1,500.

“The index looks at policy costs available to the largest number of prospective individuals,” Slome explains.  “There definitely were options that could cost significantly more but that dissuades consumers from considering this important protection,” Slome adds.  The policy cost analysis found that costs between average and highest available policies could range from20 to 50 percent.

2022 Price Index – Rates Stable

“Prices for traditional long-term care insurance remained stable to last year for a number of reasons,” cites Slome.  “Insurers committed to the market have experience when evaluating the factors that go into pricing this insurance.”   Today, policies tend to limit the level of protection available with consumers willing to assume some of the financial responsibility the long-term care insurance expert adds.

“In addition, investment returns have remained relatively stable,” Slome adds.   Insurers depend on investing collected premiums.  “Premiums paid by policyholders only account for part of the dollars that insurers accumulate to pay future anticipated claims,” he notes.

The 2022 Long-Term Care Insurance Price Index reported that a couple both age 65 could expect to pay $3,750 combined.  The two policies could provide each with $165,000 of future benefits.  Adding an option that increased future benefits by three percent annually would cost the couple almost twice as much ($7,150 combined).

The 2022 Long-Term Care Insurance Price Index data can be accessed on the Association’s website.  The report compares costs for traditional long-term care insurance as compared to linked benefit options. To access, go to www.aaltci.org/LTCFacts-2022.

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.  These specialists can provide information along with long-term care insurance quotes and policy comparisons for both traditional and linked benefit long-term care insurance options.

The post 2022 Price Index For Long-Term Care Insurance Released appeared first on American Association for Long Term Care Insurance.

“The cost for long-term care insurance is based on your age when you apply among other factors,” explains Jesse Slome, director of the long-term care insurance organization.  “Each year you wait is going to cost you more.”

According to an analysis conducted by the Association, a 55-year-old couple who both are applying, would face a 49.9 percent increase in costs if they delayed for 10 years.  The cost difference would be 100.8 percent if they waited 15 years.

“But, this assumes insurance companies maintain the current rate levels in the future,” Slome notes.  “That hasn’t happened and so these numbers are likely the minimum increase outr hypothetical couple would face.”

Slome points out other risks that waiting can result in.  “Your health is a most important factor and it’s likely not going to get better as you enter your 60s and 70s,” Slome adds.  “You risk being declined completely or having to pay a higher premium because you are classified as more of a health risk.  Finally, there’s the risk of losing the couple’s discount due to the death of one spouse, divorce or a denial of coverage for one of the spouses.”

The organization’s study looked at data for issue ages 55, 60, 65 and 70.  A chart shows the price increase effect of waiting 5 years, 10 years, 15 and 20 years. To see the cost of waiting data from the Association’s 2021 analysis go to https://www.aaltci.org/ltcfacts-2021.

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.   Request long-term care insurance costs by calling the organization at 818-597-3227 or visit their website at www.aaltci.org.

The post Long-Term Care Insurance Cost Of Waiting Index Released appeared first on American Association for Long Term Care Insurance.

“The costs for virtually identical coverage can be significant,” states Jesse Slome, director of the long-term care insurance organization.  The organization just released pricing for 65-year olds examining costs for single men, single women and couples where both parties obtain the coverage.

“A 65-year old couple can pay 46 percent more based on which company they select,” Slome notes.  “The spread between the lowest priced and highest priced policy compared by the organization was as high as 84 percent for a 65-year-old woman.”

The organization analysis reported expected costs for various policy options.  “This year we especially looked at the inflation growth option which can literally double or even triple the base cost of this insurance policy,” Slome explains.  The organization provides real examples of policies with various levels of future benefit growth.

Access 2021 Long-Term Care Insurance Price Index

According to Slome, traditional long-term care insurance policies offer consumers the option of increasing the value of their protection.   ”Years ago, many selected the option that increased their benefits by five percent yearly,” the long-term care insurance expert notes.  “More recently consumers started to favor the three percent formula.  However, this too can be costly in today’s historic low interest rate climate.”

The 2021 Long-Term Care Insurance Price Index reports that a 65-year-old couple each purchasing an initial benefit of $165,000 could expect to pay $3,750 combined for their insurance policies.

“If the couple chooses to add a three percent benefit increase option, their yearly cost more than doubles,” Slome reports.  The 2021 pricing report found that coverage with the three percent benefit increase option would cost $7,150 annually.  Selecting the five percent option would cost the couple $9,675 combined per-year.

Considering various future inflation growth options can benefit consumers suggests AALTCI.  “Working with a knowledgeable long-term care insurance specialist can be highly beneficial in terms of knowledge and savings potential,” suggests Slome.  To view 2021 long-term care insurance prices and statistics and data visit the organization’s website.

Headquartered in Los Angeles, 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.   Request long-term care insurance costs by calling the organization at 818-597-3227 or visit their website at www.aaltci.org.

The post Avoid Overpaying For Long-Term Care Insurance Advises AALTCI appeared first on American Association for Long Term Care Insurance.

“Covid and the changing economic environment calls for consumers to take a different approach to their long-term care insurance planning,” states Jesse Slome, director of the long-term care insurance organization.  “For 2021 we are reporting premium prices for a range of benefit increase options.”

Long-term care insurance policies offer consumers the option of increasing the value of their protection.   ”Years ago, the majority of people purchased an option that increased their benefits by five percent yearly,” Slome explains.  “As interest rates dropped, this became an expensive option and more consumer started to favor the three percent growth option.  However, this too can be costly in today’s historic low interest rate climate.”

Access the 2021 Long-Term Care Insurance Price Index

Click this link to access the latest 2021 long-term care insurance statistics and data.

According to the 2021 Long-Term Care Insurance Price Index, a 55-year-old couple each purchasing an initial benefit of $165,000 could expect to pay $2,080 combined for their insurance policies.

“Adding the three percent benefit increase option more than doubles what the couple will pay each year,” Slome notes.  The 2021 pricing report found that coverage with the three percent benefit increase option would cost $5,025 annually.  Adding the five percent option would cost the couple $8,575 per-year.

Slome acknowledged that having some future growth of available benefits is of potential value to consumers.  “More is always going to be better but it is a balancing act where cost plays a major factor in the buying decision,” Slome says.  “Having some coverage is always a better plan than having none and waiting to see what the future holds puts someone at risk of facing higher premiums or the risk of being uninsurable due to health reasons.”

The long-term care insurance professional noted that consumers could benefit by considering various future inflation growth options.  “You might find that a one or two percent option is not just suitable by certainly offers some significant premium savings,” Slome concludes.

The Association posts 2021 long-term care insurance statistics and data on it’s website.  The 2021 price index is now available.

Headquartered in Los Angeles, 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.   Request long-term care insurance costs by calling the organization at 818-597-3227 or visit their website at www.aaltci.org.

The post 2021 Long-Term Care Insurance Price Index – For Age 55 appeared first on American Association for Long Term Care Insurance.

The just-released 2020 Long-Term Care Insurance Price Index for 55 year old purchasers reported pricing for single men, single women as well as couples.  The American Association for Long-Term Care Insurance released data from its annual pricing study that has tracked costs data for over two decades.

“In general costs remained virtually identical to last year,” reports Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).  The organization compared current pricing for the leading insurance carriers that sold new coverage in 2019.

According to the Association’s 2020 Price Index, the average annual premium for a 55-year-old couple was $3,050, the same as the prior year.   For a single male, age 55, the average cost reported is $1,700 that was significantly lower than the prior year.

“There’s no special reason that the average rate declined,” Slome shares.  “It’s likely that some of the higher-priced companies have stopped selling large number of policies.  What remains consistent is the importance of working with an insurance professional who has the ability to compare multiple insurers and is appointed with those offering high quality coverage for a significantly lower price.”

For a single female the average cost going into 2020 is $2,650, about the same as the prior year’s study findings.

Price For Virtually Identical Coverage Continues To Vary Significantly

The Association reports that the spread between the lowest and highest cost for virtually identical coverage was typically just over 100 percent.  “Each insurance company sets their own pricing for coverage, it is up to the consumers to compare if saving money is important,” Slome adds.

The Association’s 2020 Long-Term Care Insurance Price Index shared planning and savings strategies that can be utilized by couples.   “There are ways to protect yourself and save money that agents may fail to suggest but in my opinion are worthy of consideration,” Slome noted. For example, Slome recommends married couples ask about the shared care option where one spouse had future access to the benefit pool of the other spouse or partner.  “Or, ask for pricing for a two (2) percent inflation growth option rather than the standard three (3) percent which agents often default to,” he adds.  These features are not offered by all insurers the Association points out making comparison shopping vital.

To obtain long term care insurance quotes 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.

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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/.

The post Long-Term Care Insurance Costs For 60-Year Olds Vary By Over 100 Percent appeared first on American Association for Long Term Care Insurance.

Jesse Slome, long term care insurance expert

For many consumers, the magic price point for starting the conversation about long-term care insurance is $100 according to the director of the American Association for Long-Term Care Insurance (AALTCI).

“Every discretionary purchase has a magic price point.  Get close to it and you’ll be rewarded.  Cross it, and few people will be interested and buy,” explains Jesse Slome, director of AALTCI, the national long-term care insurance association.   ”It wasn’t a coincidence that iTunes started charging 99-cents, below the magic one dollar price point.  If they had started even at $1.29 their initial launch and sales would have been very different.”

The long-term care insurance expert was sharing marketing ideas with designated long-term care insurance specialists.  “There is definitely a magic price point when speaking to consumers about the importance of long-term care planning and the role that insurance plays,” Slome advocated.  “The magic price point is $100-per-month and many insurance agents make the mistake of starting the discussion higher and then trying to down-sell if they sense price resistance.”

Slome advised the insurance agents to recognize the importance of magic price points and to start the conversation with that in mind.  “It’s definitely possible to achieve that and still offer some long-term care insurance protection that is suitable for many,” Slome points out.

According to the just published long-term care insurance cost analysis, a couple both age 55 could purchase a benefit pool of over $300,000 at age 85, the age when need for care is most likely.  “The monthly cost would be $100-per-person,” Slome notes.  “Of course, if the couple wanted more coverage you can always increase their benefits but starting high and trying to peel back is not a viable way to offer this product I believe,” he added.

The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning and helps consumers connect with knowledgeable professionals who are independent advisors.   Consumers looking for local long-term care insurance cost comparisons 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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Los Angeles, CA – February 5, 2016;  A couple in their 60s purchasing new long term care insurance coverage can expect to pay almost 10 percent less in 2016  compared to a year ago according to the annual industry analysis of prices.

“A couple where both spouses are age 60 can now pay $100 a month each for a good plan of protection that pays benefits for care at home or in a skilled nursing home,” reports Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).    The national trade group released their 2016 Long-Term Care Insurance Price Index.

The latest Price Index reflects the ‘Good-Better-Best’ approach to long-term care planning advocated by the organization’s director.  “This has never been a one-size-fits-all product and many consumers are regrettably presented with just one option, often the most costly,” explains Slome.

Good coverage he shares provides benefits for up to 360 days with a benefit pool that increases each year as the policyholder ages.   ”For many, this is going to be sufficient coverage, and it’s certainly going to be far more affordable,” Slome adds.  About half (49%) of current long-term care insurance claims end before one year according to AALTCI data.

According to the 2016 LTC Price Index, rates for a 60-year-old couple declined between seven and nine percent compared to the prior year.   “You had some high-cost providers exit the market and you had some that readjusted policy pricing,” Slome explains to account for the year-to-year change.

2016 Costs For Virtually Identical Coverage Vary By 20-To-94 Percent

What has not changed, according to AALTCI’s 2016 Price Index, is the finding that costs for virtually identical policy coverage vary significantly from one insurer to the next.    “Each insurer sets their own rates and available discounts and the price for virtually identical coverage can vary,” Slome states.    The AALTCI analysis found rates varied by as much as 94 percent.  “You generally only buy long term care insurance once, so it’s important to do it correctly the first time,” he adds.

Free access to read informational guides is available on the Association’s website.  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.

To learn more about short term care insurance options, visit the National Advisory Center for Short Term Care Information, at www.shorttermcareinsurance.org

2016 Price Index Long Term Care Insurance

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