An option is what’s called short-term care insurance, now available from a number of companies. “There is currently a significant opportunity for Colorado seniors to get coverage at a significant savings,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance.

Colorado Long-Term Care Plan Savings

A just concluded analysis found that a 70-year-old Colorado woman could buy coverage for less than half of what a 70-year old woman in Chicago would pay.

“Each insurer establishes their pricing and often you can find and take advantage of some significant savings,” Slome explains. The Association was looking into home care benefits. “Most seniors today want the ability to age and ultimately receive care in their own home,” Slome notes. “Indeed most long-term care is provided in the home and that’s where a home care policy can be very beneficial.”

In this particular instance, the Association was looking at a policy that provided $1,050 in weekly home care benefits for a 52 week period. “In Denver, Colorado a 70-year-old woman would pay $519 for $54,600 of potential benefits,” the Association director shares. “In Chicago, a 70-year-old woman would pay $1,133 yearly for identical coverage.”

To learn more about long-term care planning, call the American Association for Long-Term Care Insurance at 818-597-3227 or visit the organization’s website at https://www.aaltci.org.

Short-Term Care Insurance (STCI) presents a more affordable alternative to traditional long-term care insurance. For many seniors in Colorado, the cost of long-term care can be prohibitive, with monthly expenses ranging from $2,000 to $10,000 or more. STCI policies typically range from $50 to $200 per month, making them a viable option for those on a tighter budget. Additionally, STCI often has simpler qualification processes compared to long-term care insurance, which may involve extensive medical evaluations.

One significant advantage of STCI is that it usually comes with a 0-day deductible period. This means that benefits kick in immediately upon qualifying for coverage—an essential feature for seniors who may face sudden health issues or accidents requiring immediate assistance. Furthermore, STCI can complement Medicare coverage by providing additional financial support without overlapping restrictions found in traditional long-term care policies.

Many health issues requiring care are often resolved within a year; thus, STCI is tailored to meet these short-term needs effectively. It covers various services such as home health aides and nursing home stays for up to one year, ensuring that seniors receive necessary support during recovery periods without incurring overwhelming expenses.

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Almost half of Medicare beneficiaries have either one or two disabilities. The disability risk among seniors is important information for two reasons. The first is that disabilities are a key risk that aging Americans face resulting in the need for costly care. And second, because once someone has a disability, they generally can not qualify for long-term care insurance.

The latest data is highly relevant and important to share prior to turning 65 recommends the American Association for Long-Term Care Insurance. Living a long life means the likelihood of needing aide – and that’s where planning is important.

The data reflected seniors 65 and older who had difficulty hearing, seeing, remembering, dressing or bathing. These are Activities of Daily Living used to qualify for benefits under a traditional long-term care insurance policy.

Disability Risk Among Seniors 85-Plus

The risk of disabilities grows as one ages. Research indicates that among those aged 85 and older, approximately 25% have one disability.

Top-10 Disability Risk Among Seniors

The prevalence of disability among older adults is significantly influenced by various health conditions. As individuals age, they become more susceptible to chronic diseases and disabilities that can impact their daily functioning and quality of life. Based on the information provided, the following are the 10 leading causes of disability after age 65:

1. Arthritis or Rheumatism: This condition affects joints and connective tissues, leading to pain, stiffness, and decreased mobility. It is one of the most common causes of disability in older adults.
2. Back or Spine Problems: Issues related to the back and spine, such as degenerative disc disease or spinal stenosis, can result in chronic pain and limitations in movement.
3. Heart Trouble: Cardiovascular diseases can lead to significant functional impairments due to heart failure or other heart-related issues.
4. Lung or Respiratory Problems: Conditions like chronic obstructive pulmonary disease (COPD) can severely limit physical activity and overall health.
5. Mental or Emotional Problems: Mental health conditions such as depression or anxiety can affect cognitive function and daily activities.
6. Diabetes: This metabolic disorder can lead to various complications that affect mobility and overall health.
7. Deafness or Hearing Problems: Hearing loss can impact communication abilities and social interactions, contributing to isolation and disability.
8. Blindness or Vision Problems: Visual impairments significantly affect independence and the ability to perform daily tasks safely.
9. Stroke: A stroke can lead to long-term disabilities affecting mobility, speech, and cognitive functions.
10. Cancer: Various types of cancer may cause disabilities either directly through the disease itself or indirectly through treatments that impair physical function.

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“Women are more likely to need long-term care because they generally live longer lives,” explains Jesse Slome, AALTCI’s director. “Among women, 61% are likely to develop a chronic disability often simply due to living a long life.”

The Association director was sharing data about long-term care need and length of paid long-term care services with senior specialists who help educate consumers about the risk and need.

“Some 51 percent of women age 65 and over will need paid long-term care before they die,” Slome shared. “Meanwhile only 39 percent of men age 65 or older will need such care.”

Married people are less likely to need paid long-term care services Slome reported. “Again, it’s 51 percent of unmarried people over age 65 who will require paid long-term care in their lifetime,” Slome shared. “Whereas it’s only 43 percent for married people, part of which is likely that the healthier spouse becomes the caregiver.”

The long-term care insurance expert and advocate noted that long-term care insurance planning was off the radar during the pandemic. “We have a new generation of men and women entering the long-term care planning sweet spot. “They need information including facts and figures to understand the potential future financial risk they face,” Slome added.

To read the latest long-term care need data go to https://www.aaltci.org/long-term-care-need/.

The American Association for Long-Term Care Insurance (AALTCI) https://www.aaltci.org advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions. Access comprehensive long-term care insurance statistics and data at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2024.php.

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Costs for traditional long-term care insurance coverage are level compared to the prior year according to the 2024 Long-Term Care Insurance Price Index released today by the American Association for Long-Term Care Insurance.

“In some cases, prices decreased a little compared to the prior year,” states Jesse Slome, directory of the national organization that advocates for the importance of long-term care planning. “The declines were minimal and there were a few instances where costs rose but again the increases were nominal.”

According to the organization’s 2024 Price Index report, a couple, both age 55, who each obtain long-term care protection valued at $800,000 (total) for their needs at age 85 can expect to pay around $5,000 annually.

“This couple could pay as little as $2,080 combined if they opted for policies that did not include any future growth of benefits,” Slome acknowledges.  “Adding a 3 percent annual inflation growth factor increases their cost to $5,025-per-year. Selecting coverage that will grow at 5 percent annually increases their cost to almost $8,600 annually.”

While prices for traditional long-term care insurance offerings remained relatively level, the same was not true for linked benefit policies.

“Costs for linked benefit products are substantially lower compared to a year ago” reports the long-term care insurance expert.  “The linked-benefit market is more competitive and life insurers clearly are looking to capture more premium. Rising interest rates provided them with an opportunity to offer reduced premium costs,” Slome explains.

According to the 2024 Long-Term Care Insurance Price Index, a single 55-year-old male purchasing a life plus LTC policy providing around $520,000 of potential long-term care benefits at age 90 could expect to pay $5,022 in annual premiums. The Association’s 2023 Price Index reported that same coverage would have cost $5,600. Access the 2023 LTC Price Index at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2023.php.

The American Association for Long-Term Care Insurance ( https://www.aaltci.org ) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions. To learn more or to connect long-term care insurance specialists visit the organization’s website or call 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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“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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“Inflation is not the cause of rate increases,” cites Jesse Slome, director of the organization. “There are a variety of factors that make it necessary for insurers to raise rates on older long-term care policies. We wanted a current resource that provides consumers with updated and relevant information.”

According to Slome, insurers have been filing rate increase requests on certain classes of older policies. “The largest requests are associated with policies that included unlimited or lifetime benefits as well as those with a 5 percent compounded inflation growth factor.”

The Association’s website reports that 29% of rate increases were between 10 and 19% with 31% between 20 and 29%. “We do hear of significantly larger requests,” Slome notes. “We understand that people are upset when they are notified about rate increases but there are always options to mitigate the circumstances.”

The long-term care Association reports the between 50 and 60% of policyholders chose to pay the increase and keep their original policy provisions. “Clearly they are older and realize the value of what they purchased as well as the fact that they likely could no longer obtain long-term care insurance at any price,” Slome explains.

To learn more about long-term care insurance rate increases visit the Association’s updated information center.

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 connect to a specialist for long-term care insurance costs call 818-597-3227.

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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.

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“The new tax will cost Washington workers starting next year and many are looking into long-term care insurance as a way to avoid the tax,” explains Jesse Slome, director of the long-term care insurance organization.  ”Insurers realized that many individuals were likely buying low amounts of coverage and others intend to drop coverage once they achieve their goal of tax exemption.”

As a result, insurers have just issued new minimum levels of required protection and new procedures.  “It generally costs an insurer between $600 and $800 to health underwrite and issue a policy,” Slome explains.  “In addition, insurers pay commissions to the selling agent all of which are only recouped when a policy remains on the books for several years.”

According to Slome, Mutual of Omaha will automatically decline applications from individuals who have not been seen by a physician in the last 24 months.  In addition, the company will do a chargeback on commissions paid on policies issued through November 1, 2021 that are lapsed within the first policy year.

“Increasingly agents are telling us they do not want to spend time with consumers looking for a policy explicitly to avoid the tax,” Slome notes.  “While the State regulations do not currently require coverage be in place next year, I fully expect subsequent State-amendments will address this after legislators realize they left a loophole.”

A second carrier, National Guardian Life (NGL), has set the policy minimum Daily Benefit Amount at $100 for Washington residents.  Applications with a $50-to-$90 benefit amount selected will not be accepted by the company.  In addition, applicants must choose an inflation option and those opting for facility only benefits will not be accepted.

“NGL is also requiring that applicants have been seen by a physician within the past 24 month,” Slome notes.  “That will limit younger applicants in their 30s and 40s who often do not get regular physical examinations.”  The company will also chargeback paid commissions if premiums are not paid for the second year of coverage.

According to Slome, a 45-year old Washington male selecting a $100 daily benefit with no inflation growth would pay around $361 annually.  “Adding the 3% inflation option raises the cost to $794 and selecting the 5% option takes it to $1,751,” he says.  “For a 45-year old female selecting the 3% inflation option the annual premium cost will be $1,304.”

The new Washington tax adds an uncapped payroll tax of .58% on all wages beginning January 1, 2022.   “Someone earning $150,000 yearly will pay $870 in added taxes,” Slome shares.  “The new insurer rules have changed what we share with consumers.  I would say that $125,000-to $150,000 in annual income is the minimum threshold where considering private long-term care insurance makes sense.”

Changes imposed by Thrivent include increasing the minimum issue age to 40 for Washington residents as well as increasing the minimum monthly benefit to $3,000.  “In this case, a 45-year old male picking a $3,000 monthly benefit with 2 years of coverage will pay $351 yearly,” Slome explains.  “Many agents are going to advocate for at least a 1% inflation growth option which raises the cost to $460 yearly.”

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 from a Washington specialist call the organization at 818-597-3227 or visit their website.

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“When you live a long life, there is a real risk that you’ll need assistance with daily activities like walking, bathing and dressing,” explains Jesse Slome, director of the long-term care insurance organization.  “But too few people are prepared and when a need starts to exist your planning options, specifically long-term care insurance, are no longer available.”

The Association director shared data with leading long-term care insurance professionals who regularly counsel seniors.  “Some 28.7 percent of Medicare beneficiaries who live at home reported serious difficulty walking or climbing,” Slome shares.  “Almost one in five (17.1%) reported a serious difficulty concentrating, remembering or making decisions.”

“Without understanding that issues like this creep up on you as you age, people have no urgency to start planning prior to Medicare eligibility,” Slome adds.  “The Association’s position is that the sweet spot for long-term care planning is between ages 55 and 64, prior to Medicare eligibility.  That’s when you have the most options available and added time to prepare, whatever your ultimate choice for dealing with this real risk.”

In addition to cost and claims information, the Association posts relevant information regarding long-term care need statistics.

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

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