“Take note if you doubt the value of long-term care insurance protection or question whether insurers are paying claimants,” reports Jesse Slome, AALTCI’s director.   “The amount of claim benefits paid to policyholders grew by approximately $700 million compared to the 2020 payout.”

Claims Paid 2021

According to the Association’s annual report of claims paid, the $12.3 billion paid represents an increase of $2 billion over the total claim benefits paid by the industry in 2018.

“Claim benefits were paid to some 336,000 policyholders,” Slome shares.  “Some claims amount to small amounts and some can be significant, totally over $1 million,” the expert explains.  “Even if you do a simple calculation, the average claim amount paid out for the year would equal $36,600.  And, claims can last for several years.”   The number of individuals paid during 2021 grew by roughly 11,000 compared to the prior year.

The amount reported represents claims for those owning traditional or health-based long-term care insurance.  The Association report does not include data for those who have purchased a linked-benefit policy.  These include life insurance or annuity policies that can also provide payout for qualifying long-term care needs.

Data on long-term care insurance claims paid 2021 along with other current long-term care insurance statistics can be accessed on the Association’s website.  To see 2020 statistical reports, 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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Long term care Solutions Sales Summit

The American Association for Long Term Care Insurance and the NU Life & Health Network announced plans to produce a live online broadcast from the 2015 National Long Term Care Solutions Sales Summit.

“We are so pleased to have NU Life & Health and Retirement Advisor magazines as a partner in this effort,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance.   “This marks the first time the National Long Term Care Summit will be held in the nation’s Capital and we know the online broadcast will benefit thousands of insurance agents, brokers and financial advisors who market long term care products.”

“We are very excited about our partnership with the AALTCI Fall Sales Event,” said Tashawna Rodwell, Group Publisher of the National Underwriter Life & Health. “Collaboration with the AALTCI to help educate advisors on Long-Term Care best practices is crucial in a time of constant change. We are proud to support the Long-Term Care Industry and the agents, brokers and financial advisors who continue to advance it.”

The 2015 LTC conference takes place on Tuesday, October 27.   Four leading long term care insurers have agreed to underwrite the costs involved in making the online broadcast available free of charge.  “We thank these leading companies, Genworth, Transamerica, Nationwide and John Hancock who are truly committed to producer awareness, education and building industry sales,” Slome added.

For those not interested in attending, access to view the online broadcast will be completely free.   “All you need is a computer with Internet access,” explains Slome.  “You’ll see the speakers, view their presentation and be able to chat with others and even ask questions.”  The broadcast has a capacity for 5,000 simultaneous viewers.

Pre-registration for the live broadcast is required.  For information and to sign up, go to www.InsuranceExpos.com.

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Los Angeles; January 30, 2014 –  The release of the 2014 National Long Term Care Insurance Price Index has generated enormous media interest reports the American Association for Long-Term Care Insurance.

“The fact that single men are paying less for coverage in 2014 compared to last year certainly has generated interest,” says Jesse Slome director of the American Association for Long-Term Care Insurance (AALTCI).  The organization complies the yearly comparison of costs for 55, 60 and 65 year olds.
News reports have appeared in several hundred media outlets.   “Even the morning news in New York City aired a report today,” Slome cites.  “Heightened consumer awareness of the importance of planning for the very real risk of long term care is in everyone’s interest.”

For information about long term care insurance costs or to connect with a long term care insurance specialist who is a member of the Association call the organization at (818) 597-3227 or on their website at www.aaltci.org where access to free consumer guides is available.

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“Costs have risen slightly for couples, increased more significantly for single women but have actually decreased for men reports Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI) a national trade group.

According to the AALTCI 2014 Long-Term Care Insurance Price Index, the average cost for a 55-year-old male purchasing $164,000 of long-term care insurance protection is $925 a year.  Equal coverage for a single woman costs $1,225.    Leading insurers began charging women higher premiums in 2013.  “Women account for two-thirds of the $6.6 billion in claims paid by insurers last year,” Slome acknowledged.

A 60-year old couple each purchasing $164,000 of current protection that will grow to $730,000 combined when both reach age 80, will pay an average of $3,840 yearly, a three percent increase over the prior year’s average.    “Adding an inflation growth option builds your benefits over time but it can double the base cost of coverage,” Slome adds.

“Insurers offer a variety of discounts and options that can enable an individual to reduce the cost of protection,” explains Tracy Russo, Partner at The National LTC Education Center.   “Today there are more choices available for consumers to protect against the very real risk of needing care.”  Russo notes that it’s best to plan in your mid-40s to mid-60s.

According to AALTCI, costs for policy coverage vary significantly from one insurer to the next.    “The typical difference is around 80 percent but in certain cases one insurer charged 109 percent more than another industry leader,” states Nicole Marchand, LTC Case Design Specialist at HTA Financial Services, a leading Long-Term Care Insurance Brokerage firm headquartered in West Chester, PA.  “We can no longer assume which carriers will offer the most favorable rates.  We research every carrier for each client to provide the best solution at a reasonable price.”

Individuals interested in learning more or seeking long term care insurance costs can contact the American Association for Long Term Care Insurance by calling 818-597-3227 or visit the organization’s website www.aaltci.org to read free consumer tips or call HTA Financial at 888-430-6650.

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Tax deductible long term care insurance guide

Los Angeles; December 4, 2013 – Long term care insurance premiums remain one of the tax deductible expenses few individuals are aware of according to the American Association for Long Term Care Insurance.    A new guide produced by the organization explains the current rules and the new IRS tax deduction limits for 2014.

“The federal government and a growing number of states recognize that when people have insurance they are less likely to turn to government programs to pay for costly long term care,” cites Jesse Slome, executive director of the American Association for Long Term Care Insurance.   ”As a result, they offer tax deductions and in some cases tax credits as an incentive for individuals to plan.”

The Association reports that tax deductible levels for long term care insurance were recently increased by the IRS.   “Individuals have to meet certain levels of medically-related expenses to qualify for the deduction but that often happens as people retire,” Slome cites.  “At that point they have less income and more medical bills increasing the likelihood that their long term care insurance premiums can become tax deductible.”

Business owners can benefit from rules making long term care insurance premiums fully tax deductible.  “It’s possible to include spouses and have their premiums tax deductible as well,” Slome notes.

The Association provides information on the organization’s website.  The new 2014 Guide To Tax Deductible Long Term Care Insurance is available in E-format to members of the organization.

For additional information or for no obligation long term care insurance costs call the organization at (818) 597-3227 or visit their website at www.aaltci.org.

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long term care insurance costs for women, map shows low cost options

Los Angeles; October 25, 2013 – In roughly half of the country, a women will still pay the same for long term care insurance as a single man.  However, the opportunity to save will not last forever experts explain.

“This Spring, leading insurers started introducing new policies that charge single women an average of between 40-and-60 percent more than a comparably aged single man,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance.  “It is a progressive state-by-state roll-out however, and there are still 25 states where single women can lock in rates equal to those paid by men.”

According to an Association study, policies utilizing unisex pricing are still available in 25 states.  ” California, Florida and New York are some of the larger states where the savings advantage still exists for single women,” Slome notes.  “However, it is just a matter of time until their State Departments of Insurance get around to reviewing and approving the ‘sex distinct’ policies for sale to the public.  At that time, the current policies are no longer offered for sale.”

The organization’s study found that some states have approved one insurance company’s new policy but not all.   “There has always been a significant price difference between the rates charged by insurers,” Slome adds.  But now getting a cost comparison is extremely important for single women.”   A review of typical levels of coverage found that a 55-year-old single woman could expect to pay anywhere from 40-to-60 percent more than a single man.

“Women account for two-thirds of all long-term care insurance claims and benefit dollars paid,” Slome reports.  “That’s why insurers who paid out $6.6 billion in benefits last year recognize the need to charge women more, just as men and smokers pay more for life insurance.”

The Association has produced a map depicting states where at least one major long-term care insurance company still offers unisex rates.  It can be accessed at www.aaltci.org/women.

The American Association for Long-Term Care Insurance is the national trade organization focused on educating individuals about the importance of planning for the risk of long term care.  In 2001, the organization established Long-Term Care Awareness Month, a national effort that has been recognized by Congressional Resolution as well as by a number of States.

Link to webpage with long term care insurance costs for women map showing states where unisex rates still apply.

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Long term care awareness month logo 2013

Los Angeles; October 21, 2013 – November has been declared Long Term Care Awareness Month to support increased awareness and education surrounding the importance of planning for the risk of and the role played by long term care insurance.

“Long Term Care Awareness Month provides an opportunity for all those involved in the various industries to focus on creating heightened awareness,” shares Jesse Slome, executive director of the American Association for Long Term Care Insurance, the long term care insurance trade group.   Slome is the creator and founder of the Awareness Month program, first established in 2001.  The event was recognized by a Congressional Resolution and has been since proclaimed by governors and mayors across the country.

As part of AALTCI initiatives, the organization published a special insert within copies of November’s Kiplinger’s Personal Finance magazine.  “The special insert addresses strategies and provides examples of ways to save on long term care insurance, an important option that is again gaining recognition in light of fewer government options,” according to Slome.

Long Term Care Awareness Month is primarily designed to be a grassroots effort.  “We know that many companies undertake special programs and certainly insurance agents do what they can to use the opportunity to create awareness,” Slome add.  “We know many top long term care insurance specialists will offer a free, no risk evaluation of risk, needs and costs,” Slome shared.

The Association makes available artwork for the 2013 Long Term Care Awareness Month logo.   Consumers seeking information or long term care insurance costs can connect with a long term care insurance designated professional who is a member of the Association, by calling the organization at (818) 597-3227.

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2013 long term care insurance sales reported by AALTCI

Los Angeles; August 24, 2013 – Simplistic reports of data regarding long term care insurance policy sales result in a misunderstanding of market trends says the director of the American Association for Long-Term Care Insurance.

“During the first half of 2013, nearly 100,000 individuals purchased traditional long term care insurance policies and tens of thousands purchased life insurance and annuity products that provide long term care benefits,” declares Jesse Slome, executive director of the national long term care insurance industry trade group.  Slome was responding to questions by executives who market long term care insurance following a report that industry sales had declined 20 percent during the second quarter of 2013.

“Several long term care insurance carriers are reporting sales increases of 20 percent or more, and no one cites that,” Slome shared with the group.  “Others experienced sales growth of between 10 and 20 percent.  Overall sales were down due to several factors that impacted the first half of the year.”  Among those, Slome noted the failure of California’s Department of Insurance to approve newer policy filings had impacted sales.  “When the largest state in the nation has few options available, sales are going to be impacted.”

The national long term care insurance expert pointed to the continuing trend among insurance companies to be more selective in terms of accepting applicants.  “The knowledge gained over the past 20 years helps insurers understand long term health risks and to keep policy costs as low as possible which is what consumers want.  As a result, they will reject more applicants with existing health issues,” Slome explains.  “That reduces the number of overall policies sold.”

“Long term care is a universal issue facing Americans who are now living longer lives than ever but long term care insurance is not the universal solution,” Slome stated to the executives.  “There is a very defined market for this product but that is limited to those who can afford the premiums as well as meet the health qualifications when they apply.”

“Those who advocate a new national long term care insurance program as part of Medicare have yet to make a proposal that has any semblance of reality,” Slome concluded.  “We don’t see the American public or politicians for that matter ready at this point to add a new health care-related mandate or increase taxes, which leave families only three options; turn family members into caregivers, pay for care or have insurance to pay some of the cost of care.”

For additional information or to request long term care insurance costs and information connect with a designated long term care insurance specialist who is a member of the Association by calling the organization at 818-597-3227 or visiting their website.

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Life events tend to trigger the decision to plan according to a national consumer study of long term care insurance purchasers. Mutual of Omaha commissioned the MSR Group to conduct a telephone survey with its own policyholders as well as those who own policies from other companies.”Planning for retirement or entering retirement was the primary motivator for 52.1 percent of buyers,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance.   “More than a third (34.7%) were influenced by an experience with a loved one who needed long-term care services.”

Nearly a quarter of respondents (23.6 %) shared that protecting their assets was the primary purpose for purchasing a long-term care insurance policy.   Security or peace of mind knowing future needs would be met was cited by 18.1 percent and 17.4 percent wanted to avoid being a financial burden to family.

When asked why they purchased a policy when they did rather than waiting, most of the survey participants said they were aware that the cost of long-term care insurance increases with age.  Concern about future health was cause for action by 11.4 percent of policy buyers.

“The sweet spot for investigating long term care insurance is between ages 50 and 65 because individuals must still be relatively healthy,” suggests Jesse Slome, director of the American Association for Long Term Care Insurance.  “Some insurance protection in combination with Social Security income and savings is not just a prudent way to plan, but makes this protection far more affordable than many expect.”

According to the Association’s 2013 Long-Term Care Insurance Price Index a married couple both age 60 would pay $1,816 annually for a policy providing each spouse with $162,000 of protection.  “We advocate a ‘Good, Better. Best’ approach to long-term care insurance planning,” suggests Slome.  “A policy should be tailored to your individual situation so you achieve both affordability today and peace of mind and security tomorrow.”

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“To sell newspapers and get people to watch television news, the media must focus on disasters and scary news,” declares Jesse Slome, executive director of the long term care insurance industry trade group.  “To be fair, The Journal has contained many positive stories extolling the virtues of long term care insurance, though never on the front-page.”

The national long term care insurance expert commented on the article appearing today by stating long-term care insurance premiums have risen because more people are claiming benefits than expected and interest rates settled and remain at historic lows.   “Investment returns on policyholder premiums account for between 40-and-60 percent of anticipated revenue,” Slome explained.  “That’s especially true today when consumers chose to increase policy benefits by five percent compounded annually, or the ‘gold standard’ as the Journal referred to it.  Gold is expensive.”

Slome notes that regrettably overlooked entirely by the story (Long-Term-Care Insurance Leaves Customers Groping) is the fact that in 2012, insurers paid out $6.6 billion in long-term care insurance claim benefits to 264,000 policyholders.  “The largest (still open) claim has reached $1.8 million paid over almost 16 years,” Slome reports.  “The policy was purchased for $881 annually with premiums paid for three years until the claim began.”

“Long-term care insurance is not a universal solution,” Slome admitted.  One must be able and willing to afford premiums.  More importantly, one must meet health requirements imposed by insurers to avoid healthy applicants subsidizing unhealthy ones.

“I like to paraphrase Winston Churchill,” Slome continued.   ”It has been said that long-term care insurance is the worst form of protection except all the others that have been tried.”

Consumers seeking long term care insurance costs who wish to connect with a designated specialist, a member of the American Association for Long-Term Care Insurance, can also visit the organization’s website or call 818-597-3227.

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