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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“The larger states with their larger populations were expected to have the most long term care insurance policyholders,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance.   Texas has over 452,000 residents with this coverage with New York reporting just over 411,000.

Massachusetts reported the largest percentage increase in the number of year-to-year owners for the top 15 states.  “Our study found an almost 21 percent increase in the number of residents with long term care insurance,” Slome adds.

A few states included in the Association’s report showed an overall year-to-year decline in the number of people with this insurance coverage.  “While you have new people buying coverage, you also have people lapsing their policies and a percentage die every year as well,” Slome points out.  According to the long term care insurance expert some eight million Americans currently own long term care insurance purchased on an individual basis or though their employer’s benefit offerings.

“Residents in every state have been hearing repeated news stories about how State and also Federal programs are being cut back,” Slome says.  “People understand that if they want choice and options for how and where they will receive care, they need to plan and not depend on whatever government programs may exist in the years to come.  More have been turning to long term care insurance as a way to deal with the costly risk of living a long life.”

The Association has several thousand long term care insurance professionals who are members and available to provide free no-obligation information on the topic.  To connect with one call the organization’s national headquarters  at (818) 597-3227.  For free guides on reducing long term care insurance costs visit the Association’s website.

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Between 40-and-60 percent of the dollars an insurance company accumulates to pay future claims as well as costs comes from the premiums paid annually by policyholders.  “The rest, roughly half, comes from investment return from bonds and other instruments,” Slome notes.  “When yields drop as they have over the past few years, insurers have to charge more for policies and you reach a point where you simply price a feature out of the reach of people.  No one sells cars today that get 10 miles per gallon because no one would buy them, and the analogy is similar.”

The nation’s long term care insurance expert explains that long term care insurance policies have changed since being introduced in the late 1980s.  “The original versions only paid for nursing home care, while today most pay benefits for care in one’s own home or assisted living communities,” Slome adds.  “Things change, economies change and when interest rates rise again one day I would expect to see that impact the design of long term care insurance coverage being offered.”

Consumers who desire longer periods of benefits today can still purchase coverage to achieve that.  “Couples can each purchase a policy providing 10-years of benefits and add a shared care option which effectively yields a 20-year plan of protection,” Slome notes.

When considering longer duration policies which are always the most expensive, the Association advises consumers seek out a knowledgeable long term care insurance professional designated by the Association.  To connect with one call the Association’s Los Angeles-based national headquarters  at (818) 597-3227.  You can also access informative guides authored by Slome on reducing long term care insurance costs via the Association’s website.

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According a study of new buyers conducted annually by the American Association for Long-Term Care Insurance a growing percentage are choosing newer growth options including one that increases benefits by three percent annually.  “You want your coverage to grow to keep pace with anticipated increased costs over time,” explains Jesse Slome, executive director of the national trade organization.

Historically, the most popular option increased future benefits by five percent, Slome notes.   “Today, three percent is becoming the new five percent because consumers are finding it a far more affordable and therefore attractive option.”  The long term care insurance expert explains that costs for coverage and benefit increase options are closely tied to interest rates.  “With interest rates at near zero with no one predicting any change in the next few years, how can you increase benefits at five percent and keep the premiums affordable?” Slome asks.  “As a result, newer options which benefit consumers are being offered.”

The Association study found that 23.5 percent of new buyers opted for the three percent compound growth option in 2011 up from 16.7 percent during the prior year.   The percentage of those selecting the old-style five percent growth option declined from 42.8 percent to nearly 34 percent.

The need to plan for the eventual risk of needing long term care is vital for individuals over age 50 according to Slome.  “We tell people the risk they will need care is either zero percent or 100 percent and the question is, do you have a plan in place?”  Not all those who want to purchase insurance can do so according to the Association.  “You must be able to health qualify for this coverage and you must be able to afford the premiums,” Slome concludes.  “The newer options now available make it much more affordable for many more people who recognize the risk they face and want to prepare.”

For more information or to connect with a knowledgeable long term care insurance professional designated by the Association, call their Los Angeles national headquarters  at (818) 597-3227.  You can also access informative guides authored by Slome on reducing long term care insurance costs via the Association’s website.

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“We applaud the study because Americans are already experiencing a health crisis and the problem is only going to get worse,” shares Jesse Slome, executive director of the American Association for Long  Term Care Insurance, a national trade organization that studies health and medical trends that impact the needs of older Americans.

“People incorrectly assume that everyone can purchase long term care insurance, but that is just not true,” Slome shared with consumers this week.  “Diabetes is one of the conditions that will prevent you from health qualifying with most insurance companies clearly because it is a leading reason people will need costly long-term care.”

The German study involved over 5,500 individuals with diabetes.  Scientists reported that those individuals who maintained moderate levels of physical activity had the lowest risk of death.  A second study cited by Slome found that weight training without any aerobic activity can help prevent Type 2 diabetes.  The study of 32,000 men drew the conclusion that by increasing muscle mass and improving insulin sensitivity, the study participants benefited.

Approximately 20 percent of those individuals who apply for long term care insurance are declined for health reasons according to Association study.  “The percentage of declined applicants increases for older applicants,” Slome notes.  “We advise individuals to look into their long term care planning options prior to reaching age 65 when they qualify for Medicare.”

According to the study’s group of participating men those who engaged in aerobic exercise for up to one hour weekly reduced their risk of type 2 diabetes by seven percent. Between one hour and 150 minutes of aerobics reduced risk by 31 percent, and those who performed at least 150 minutes of aerobic exercise reduced their risk by 52 percent.

“We need to encourage much more awareness of what it takes to live a long and healthy life,” Slome concluded, “and then how to plan for living into your 90s and beyond.”

For more information or to connect with a knowledgeable long term care insurance professional designated by the Association, call their Los Angeles national headquarters  at (818) 597-3227 or read free guides authored by Slome on reducing long term care insurance costs that can be accessed on the Association’s website.

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According to analysis of data by the American Association for Long-Term Care Insurance the majority (56 percent) were women.  “Eldercare providers are those who provide unpaid care to someone over the age of 65 who needed help because of a condition related to aging,” explains Jesse Slome, executive director of the national trade organization that studies health and medical trends that impact the needs of older Americans.

According to Slome, individuals ages 45 to 54 and 55 to 64 were most likely to provide eldercare.  “The percentages were 23 percent and 22 percent for each of these two categories,” Slome one of the nation’s leading long term care insurance experts shares.  “The majority, some 42 percent cared for a parent.”

Eldercare often consisted of tasks also referred to as conditions requiring long term care.  “Regrettably, the vast majority of Americans have no plan to address the very real risk they or a loved one will eventually need long term care,” Slome acknowledged.  “When the time comes they are going to have to turn to their spouse or adult children for care, changing their lives sometimes for months, sometimes for many years.”

According to the Association, some 8.1 million Americans currently have long term care insurance protection according to the Association’s 2012 research.  “People seem to focus on the financial benefits of this protection and they are important,” Slome adds.  “But the real benefits are non-financial.  This protection allows your loved ones to care about you rather than having to be forced to care for you.”

For more information or to connect with a knowledgeable long term care insurance professional designated by the Association, call their Los Angeles national headquarters  at (818) 597-3227 or read free guides authored by Slome on reducing long term care insurance costs that can be accessed on the Association’s website.

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“Women live longer than men and are far more likely to have a need for long term care,” states Jesse Slome, executive director of the American Association for Long Term Care Insurance a national trade organization that supports insurance professionals who market this protection.  “Women make up the majority of Americans in nursing homes and are far more likely to get debilitating conditions like Alzheimer’s disease.”

According to the Association’s annual survey of newly opened long term health care insurance claims, some 65 percent of new qualifying claims in 2011 were begin by women.  “The majority of claims were for care received in the policyholder’s own home,” Slome reports.  “Most people connect long term care insurance with a skilled nursing facility but the truth is most people buy it and use it because they want to avoid a stay in a nursing home.”

The information is published in the organization’s 2012 Long Term Care Insurance Sourcebook.  Some 32 percent of all new claims opened during the year were made by women for care at home.  “Long term care insurance policies typically cover care at home, in an assisted living community or a skilled nursing home facility,” Slome notes.  Some eight million Americans have some form of long term care insurance protection and the industry paid out $6.6 billion in claims to over 200,000 individuals last year.

Copies of the 2012 Long Term Care Insurance Sourcebook can be obtained from the American Association for Long-Term Care Insurance.  The organization serves the public by educating Americans about the importance of planning for the risk of needing long term care.  For additional information on long term care insurance costs or to connect with a specialist member of the Association call (818) 597-3227 or visit the organization’s website.

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“It takes a while for any new tax favored benefit to gain acceptance,” says Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  “As more people have balances in their HSAs, we anticipate that more will use the funds to pay for long term care insurance.”

According to data researched by Devenir an investment firm that specializes in providing investment options for HSAs, the average account balance for the first half of 2012 grew to $1,996 an approximately 10 percent increase over the prior year.  “Few people are aware that long term care insurance premiums may be paid from a Health Savings Account up to the IRS limits set each year,” Slome one of the nation’s leading long term care insurance experts explains.

For 2012 the Internal Revenue Service has established a limit of $350 for an individual age 40 or less and $660 for someone who is more than 40 but not more than 50.  “The average age when individuals start buying long term care insurance is mid 50s according to Slome.  “At younger ages the costs are lower and using a tax-advantaged HSA account to pay for some or all of the coverage is a tax-smart planning idea,” Slome acknowledged.

The Association notes that in recent years more small and mid-sized businesses have been offering long term care insurance to their employees on a voluntary basis.  “I’ll bet few know they can have employees use their HSAs to pay for this benefit,” Slome notes.  “But over time awareness will grow as will the number of people taking advantage of this protection.”  The growth of long term care insurance sales to small businesses is attributed to special tax incentives now being offered as well as access to discounts and some health underwriting concessions that vary from one insurer to another.

For more information, connect with a member of the American Association for Long-Term Care Insurance.  The organization serves the public by educating Americans about the importance of planning for the risk of needing long term care.  For additional information on long term care insurance costs or to connect with a specialist member of the Association call (818) 597-3227 or visit the organization’s website.

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To encourage more individuals and small businesses to plan for the eventual need for long term care, the federal government and a growing number of states offer tax deductions and even tax credits for the purchase of long term care insurance.  “There are separate rules for individuals and business owners who may be able to fully deduct the cost of this coverage,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national organization that advocates for long term care planning.

The Association has published a guide explaining highlights of the various rules governing individuals and various forms of businesses.  “There are so few tax advantaged ways to plan for and protect your future that taking advantage of every possible tax savings is a real bonus,” Slome states.  “We find many accountants are not aware of the rules and since they do not sell insurance have no incentive for talking to their clients about this opportunity.”

While individuals are only allowed federal tax deductions up to yearly maximums and must meet the 7.5 percent threshold for medical expenses, Slome who is one of the nation’s leading long term care insurance experts points out that after retirement, older individuals tend to have larger medical expenses which can make the cost of long term care insurance deductible.  “The maximum individual deduction available for 2012 can be as much as $4,370 per-person,” Slome adds.

Business owners enjoy special tax advantages when offering tax-qualified long term care insurance.  “Small business owners looking for tax deductible benefits today for a benefit that will be there after they retire or sell the business should look into this,” Slome advises.  “Plus, a number of insurers will offer small groups a discount which can even apply when only a few people are covered by the plan.”

Copies of the Guide To Tax-Qualified Long Term Care Insurance Protection can be obtained from members of the American Association for Long-Term Care Insurance.  The organization serves the public by educating Americans about the importance of planning for the risk of needing long term care.  For additional information on long term care insurance costs or to connect with a specialist member of the Association call (818) 597-3227 or visit the organization’s website.

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