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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best long term care insurance website

Well-intentioned insurance agents inadvertently price far to many older single women out of the long-term care insurance marketplace declares the director of the American Association for Long-Term Care Insurance (AALTCI).

“Women who are on their own at older ages need long-term care insurance more than anyone but when a solution that’s beyond their ability to pay is presented, they do what every responsible person would do, they simply say no,” explains Jesse Slome, director of AALTCI, the national long-term care insurance association.   ”Agents who don’t take price into account when helping single women age 60 and older plan are doing a disservice and leaving millions of women vulnerable.”

Slome was advising agents who offer long-term care insurance solutions that millions of women who are divorced, widowed or never married have both special needs and often financial circumstances that need to be taken into account.

“Women on their own are likely to need long-term care and don’t have a spouse or partner who can pitch in and provide some or all of that care,” Slome noted.  “Plus, they generally have less income and far less in terms of savings with which to pay for optional insurance products such as LTC insurance.”

There are viable solutions that agents need to share and start their discussions with, Slome advocated.  “For example, stop including the three percent inflation option with every proposal you make,” the advocate suggested.  “It’s a great option but will put the price beyond what many women can and will afford to pay.”

Slome shared an example of what he considers a viable option.  “For about $160-per-month, a 60-year old single female can buy coverage with a 1.5 percent annual growth of benefits so that her available benefit pool will equal $250,000 at age 85,” he noted.  “The same coverage with a 3 percent growth option will cost $241 monthly and while the benefit pool will be larger, if the individual says no to coverage, she has nothing to pay should care be needed.”

A second option shared involved a plan that would reduce the pool of benefits from $250,000 to $155,000 at age 85.  “For many women that will be more that enough coverage to pay for care services in their own home for quite some time,” Slome shared.  “The savings in insurance premiums will be about $360 a year.”

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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“Insurers this year will likely pay out $10 billion in claims and that number will grow each year as more individuals begin to claim benefits from their policies,” explains Jesse Slome, director of AALTCI.  “The $100 billion is money individuals will not have to spend on needed home care or assisted living or skilled nursing home care for themselves or loved ones.”

The Association annually examines the total of claims paid by the nation’s long-term care insurance companies.  “While many larger companies like Prudential, Metropolitan Life, John Hancock and Unum no longer make available new policies, they still service their current policyholders and pay claims, lots of them, ” Slome cited.  “It is an important story that we strive to tell both consumers and insurance professionals.”

Long-Term Care Companies Pay $9.2 Billion in 2017

According to the Association the nation’s long-term care insurers paid $9.2 billion I benefits in 2017.  The AALTCI study of claims data found that some 72.5 percent of claims that began in 2017 were for policyholders age 80 and over.   “Almost half of that (22.0%) were for policyholders who were age 90 or older,” Slome notes.  “You pay money for this protection and if you live a long life you are very likely to use the policy.”

According to AALTCI, just over one in five claims (20.5%) began when policyholders were between ages 70 and 79.  Policyholders between ages 60 and 69 initiated some 5.5 percent of newly opened claims.

To learn more about long-term care insurance costs and planning options call the American Association for Long-Term Care Insurance at 818-597-3227 or visit the organization’s website at www.aaltci.org to find and connect with local LTC insurance professionals.

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“The long-term care insurance industry paid claims last year in excess of $9.2 Billion to hundreds of thousands of individuals,” shared Jesse Slome, director of the national long-term care insurance organization.   ”Included in the hundreds of thousands who legitimately have need are individuals making fraudulent claims something that impacts not just insurers but those who own or are considering buying this coverage.”

Slome was sharing industry updates with leading long-term care insurance agents.  “I was pleased to see that New York Life was pursuing action against a North Carolina pastor who was paid $389,500 through her long-term care insurance policy but then was seen in Facebook photos performing activities contrary to her claim of severe and debilitating conditions.”

“Fraudulent long-term care claims are inevitable but the costs are inevitably passed on to honest customers and that’s why it is important to encourage and support greater vigilance and action,” Slome shared.

“Certain insurance carriers have become more aggressive in fighting fraud when they discover it,” explains Stephen Serfass, an attorney with Drinker Biddle & Reath LLP in Philadelphia, PA.  “The fraud sometimes comes to light after the carrier has paid tens or hundreds of thousands of dollars in benefits.”

Slome encourage Association members to educate their clients and prospective buyers to the fact that insurers do pay claims,  “One of the misperceptions held by many is that insurers deny claims or fail to pay them, something that is patently false,” Slome stated.

The organization is presently conducting a study of claims that will be published later this year.  “We are hoping many of the top insurers will take the time to share information on this important topic.”

Consumers and insurance agents who want to learn more about long-term care insurance costs and planning options can call the American Association for Long-Term Care Insurance at 818-597-3227 or visit the organization’s website at www.aaltci.org to find and connect with local LTC insurance professionals.

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“One of the best ongoing studies of long-term care insurance buyers and claimants is prepared by the Connecticut Partnership for Long-Term Care,” explains Jesse Slome, AALTCI’s director and one of the key individuals who helped launch California’s Partnership program.   ”Connecticut was the first state to adopt the LTC Partnership program and has been reporting quarterly since its inception in the early 1990s,” he notes.

Partnership programs are a joint effort between State governments and private insurers to create an option designed to help individuals meet future long-term care needs without depleting all assets to pay for care.

“One can gain great insight by examining the latest Connecticut study,” Slome shared with insurance professionals during an industry update call.  “The information is relevant to those looking into ways to protect against the risk of a costly LTC claim.”  The latest report published November 7, 2017 reports on data through June 30, 2017.

Nearly two-thirds (60%) of individuals who filed claims are women, according to the Connecticut report.  “Half of the claimants are married, 39 percent were not married and the remainder were of unknown status,” Slome noted.

The average age at the time of policy purchase for someone on claim was 66.   “The mean age at the time of claim was 79,” Slome says.  The amount of claim benefits paid to date ranged from a low of $19 to a claim that has exceeded $1.5 million.  “The mean claim benefit paid is $115,617 which I am certain is far more than any of the policyholders paid in premium,” Slome shared with the group.  “You can bet the people who had claims were very pleased they had purchased this insurance protection, a story that needs telling.”

“Statistical information is always helpful but it can be misleading,” Slome cautioned the group.  “When I talk to consumers, I share that the likelihood of needing long-term care is either zero percent or 100 percent.  The real question is, if you need this care, how will it impact your family and loved ones, your retirement savings and legacy plans.  That’s why some long-term care insurance is always better than none at all, and where available and priced affordably, a Partnership plan is an excellent option.”

To learn more about long-term care insurance planning options call the American Association for Long-Term Care Insurance at 818-597-3227 or visit the organization’s website at www.aaltci.org to find local LTC insurance professionals.

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New 1035 Exchange Guide

Millions of Americans who have existing annuity or life insurance policies can benefit from reading a new guide explaining the benefits of a 1035 exchange.

“Few individuals are familiar with Section 1035 of the Internal Revenue Code that allows an individual to repurpose an existing annuity of life insurance policy to one that includes tax-advantaged long-term care benefits,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI). The national organization has just released the Guide To Long-Term Care Planning Using 1035 Exchanges.

The 24-page guide, accessible online, explores the basics of how 1035 exchanges can benefit individuals and includes several real-life scenarios depicting the advantages of converting existing annuities or life insurance policies. “The Pension Protection Act (PPA) enacted by Congress encourages individuals to plan for the very real risk of needing long-term care (LTC), and Section 1035 exchanges are one of today’s significant planning opportunities available,” Slome shares.

“The PPA provides meaningful tax- and long-term care planning advantages to consumers,” Slome notes. “Funds withdrawn from a traditional nonqualified annuity can be used to pay for long-term care expenses, but there will likely be tax consequences. A simple 1035 exchange to a PPA-approved linked-benefit annuity can provide 100-percent income tax-free withdrawals to pay for LTC costs.”

One of the leading providers of linked-benefit annuity and life insurance long-term care protection says many people aren’t aware of the tax implications of their current strategies.

“Americans have nearly $3 trillion in fixed and variable annuities set aside as part of their retirement planning strategy,” reports Chris Coudret, vice president and chief distribution officer at OneAmerica^®. “Many of these individuals could benefit by taking advantage of a 1035 exchange, which could offer tax benefits as well as provide long-term care benefits, should they be needed. This new guide can be a tremendous help to financial professionals looking for information and resources for their client conversations.”

OneAmerica will make copies of the guide available to insurance and financial professionals.

Free Access to Read The 1035 Exchange Guide Online

“If you are 50 or older and you have an annuity or a life insurance policy, a 1035 exchange could be the ideal way to plan for a future long-term care need,” Slome suggests. “You maintain the benefits you currently have while adding some tax advantages.  For couples, there is even the possibility of using one policy to provide tax-free long-term care benefits for both spouses.”

To read the 1035 exchange guide online visit the American Association for Long-Term Care Insurance’s website at www.aaltci.org/1035-exchanges.

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Established in 1998, the American Association for Long-Term Care Insurance advocates for the importance of LTC planning and supports insurance professionals nationwide.  Jesse Slome, founder and executive director of the organization, is a leading consumer advocate and author of numerous consumer and professional guides focused on retirement and insurance planning that have been published by governmental agencies and private organizations.

OneAmerica^® is the marketing name for the companies of OneAmerica. AALTCI is not an affiliate of the companies of OneAmerica. Provided content is for overview and informational purposes only and is not intended as tax, legal, fiduciary, or investment advice. Before replacing existing life insurance or annuities all factors should be weighed to determine suitability.

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Jesse Slome, long term care insurance association director

Los Angeles, CA – January 17, 2017 – The nation’s long term care insurance companies paid $9.2 Billion in claim benefits to some 295,000 individuals in 2017 according to the American Association for Long-Term Care Insurance.

“The total of all benefits paid increased as did the number of long term care insurance policyholders on claim,” reports Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI), a national trade group.  According to AALTCI, in 2016, total claims amounted to $8.65 Billion paid to some 280,000 individuals.

The Association conducts an annual study of claims paid to policyholders who have a traditional, health-based long-term care insurance policy.   Because the number of individuals on claim can vary on a daily basis, the Association measures based on a fixed date each year.  “We report 295,000 received benefits but during the year actually many more individuals and families benefited from this important insurance protection.”

“The total value of benefits paid was also undoubtedly larger as there are thousands of individuals who own linked benefit life insurance or annuity policies that can also provide LTC benefits,” Slome acknowledged.

“When you live a long life the risk of needing services referred to as long-term care increases significantly,” Slome explains.  “Without insurance to pay some or all of the cost, the caregiving responsibility often falls on elderly spouses or adult children caring for their aging parents.”

“Long term care insurance provides more than just money,” Slome adds.  “It’s as much about having control and choices, while protecting your retirement plans and lifestyle.”

To compare long term care insurance costs connect with a designated professional by calling the national organization at (818) 597-3227 or visiting their website where local agents can be found.

The American Association for Long-Term Care Insurance is the national professional organization exclusively dedicated to promoting the importance of planning for long-term care needs.

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Guide to costs not covered by Medicare or ObamaCare

July 6, 2015, Los Angeles, CA –   Individuals lack an understanding of health care costs that are not covered by Medicare or their individual health insurance including ObamaCare declares the head of the American Association for Long Term Care Insurance.

“People don’t think about these things until they go to the doctor, a hospital or need care and then they are shocked to get a bill,” explains Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI).  Slome authored the new guide “Shock Treatment” to create a heightened understanding among consumers.

“We are releasing the guide first as part of an effort focused on North Carolina residents who can benefit from a special insurance policy that affordably covers some of these costs,” Slome notes.    ”We recently became aware of a home health care insurance policy that offers residents of North Carolina, especially those over age 65, both home care benefits as well as additional benefits that pay for care that may not be covered.”

The Association does not sell insurance policies, Slome points out.   “A North Carolina female age 65 would pay $240 a year for around $50,000 of potential home care benefits,” Slome explains.  “Even if she doesn’t need home care for many years to come, this policy will pay up to $250 back for prescription medications each year and that’s just one of the additional benefits.”

“To be honest, every North Carolina resident over the age of 60 should take a look at this special insurance policy available to them in their state,” Slome advises.   “You can get similar coverage in other states but not at the same affordable price approved by the North Carolina Department of Insurance.”

To learn more or read the Association’s new consumer Guide, Shock Treatment, go to www.aaltci.org/nc

The American Association for Long-Term Care Insurance and the National Advisory Center for Short Term Care Information were established to create consumer awareness and support insurance professionals.  To receive more information or connect with a licensed professional call the organization at 818-597-3227 or visit the AALTCI website.

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Jesse Slome, long term care insurance expert

Some of the newly introduced long-term care insurance policies offer features and options that provide significant benefit and potential cost savings for consumers.

“Long-term care insurance policies continue to add consumer friendly features that benefit individuals,” declares Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).   ”The new options and choices give consumers greater choice and flexibility as well as more affordable options to meet different budgets and lifestyles.”

“Our newest policy was designed with the claimant in mind and will provide advanced payment for facility care and a cash benefit for hospice care, two valuable benefits new to the long-term care insurance market,” reports Bill Naylon, President of MedAmerica Insurance Company a leading provider of long-term care insurance protection.  MedAmerica announced plans to roll out its newest policy offering new benefit features later this year.

“Innovative long-term care insurance benefits like these mean policyholders won’t have to always advance money for care and wait to be reimbursed, especially at a time when families have many other stressful financial issues to address,” cites Slome.  “Thanks to continual policy improvements, the many new and improved long-term care insurance policies sold today are nothing like the policies sold 10 and 20 years ago.”

Some of the newer policies offer greater flexibility when selecting present and future benefit amounts, as well as cost-reducing options.  “Smart investors periodically review their investments and adjust when it makes sense,” Slome shares.  “Some of today’s newer long-term care insurance policies also offer flexible planning options that are worth looking at.”   The best time to explore your options is when in your 50s and 60s.

Policy provisions and pricing can vary significantly from one insurance carrier to the next.  According to AALTCI’s 2015 Long-Term Care Insurance Price Index, costs for comparable coverage can vary by as much as 120 percent.  “Your benefits are governed by the policy, which can be up to 50 pages long, and that’s what makes it so important to work with a long-term care insurance professional who stays abreast of the latest policy innovations and changes,” Slome suggests.

To learn more and to receive a long-term care insurance cost comparison, visit AALTCI’s website or call 818-597-3227.  Consumers can read six guides previously published in Kiplinger’s Personal Finance magazine at www.aaltci.org/guides.

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long term care insurance sales tool for joint sales

“Long term care insurance really requires special expertise and that’s one reason why fewer insurance agents like to offer this important product,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance.  “Rather than losing a potential sale and even an existing client, we recommend they partner with a specialist who can provide their client the needed expertise.”

To encourage teaming up for long term care insurance sales, the Association is offering a special guide, “Is Selling Long Term Care Insurance Still On Your To-Do List?”  Copies of the guide are available to insurance professionals in quantities of 200 ($45) and 400 ($60).

“The Association gets calls daily from individuals who are frustrated that their insurance agent only offers long term care insurance policies from one company, or really does not understand the nuances of newer policies,” Slome notes.  “It would be to their benefit to team up with someone who has the knowledge and expertise.”

The brochures can be viewed online but only phone orders are being accepted for this special item.   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 and supporting insurance professionals who market long term care solutions.

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