“Over 95 percent of policyholders keep their coverage in force because they understand the enormous value of what they purchased,” explains Jesse Slome, director of the long-term care insurance organization.  “Every year five percent of policies lapse but that includes cases where the policyholder has died.”

The Association director was sharing long-term care insurance policy lapse data with leading long-term care insurance specialists.   ”There is a mistaken belief that when insurance companies raise their rates, it’s a way to get people to cancel or drop their coverage,” Slome adds.  “This is clearly not the case as the numbers show.  Once people buy long-term care insurance, they tend to keep the coverage in place because they really understand the risk and the value.”

Access 2021 Long-Term Care Insurance Statistics
Link to access 2021 Long-Term Care Insurance statistics

Slome shared that he regularly has to dispel misconceptions among reporters writing about long-term care insurance rate increases.  “Of course no one likes to see the cost of something change but there are understandable reasons,” Slome shares.  “And, when you explain that insurers offer options that enable the policyholder to keep their coverage while often paying the same premium, this is information they were not aware of.”

The long-term care insurance persistency data is proof positive that even in light of recent rate increases, policyholders retain the coverage they bought.  “Often the policyholder who purchased coverage at age 60, is now 70 or 75 and they are seeing others who have a need for care,” Slome adds.  “They are not going to lapse their coverage and they don’t.”

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.

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