“When interest rates rise insurers are in a better position to charge less,” explains Jesse Slome, director of the organization.  “Costs for linked-benefit long-term care insurance policies are definitely lower. With more insurers now offering this attractive form of protection, comparing before buying is more important than ever.”

According to the annual analysis, a 55-year-old male purchasing $165,000 of immediate benefits could expect to pay $900 a year for a traditional long-term care insurance policy. “Traditional LTC remains the most cost-efficient way to insure yourself because the policy does only one thing; pay for qualifying long-term care,” Slome explains. Rates for traditional LTC in 2023 are also slightly lower than the prior year.

“Linked-benefit or hybrid long-term care insurance policies are different in nature,” Slome notes. “We strive to give as close to an apples-to-apples comparison so consumers can better understand the contrast.”

The 2023 Long-Term Care Insurance Price Index reports that a male age 55 would pay $3,930 yearly for a policy providing a pool of $180,000 long-term care benefits. This represents a 15 percent decrease from the prior year reports AALTCI.

“People like the fact that linked-benefit LTC policies do double-duty, providing a life insurance death benefit if no long-term care is needed.”  For the policy used to compare, the minimum death benefit is $120,000, Slome notes.

The Association reports available costs for men, women and couples at ages 55, 60 and 65. “Price declines ranged but generally were in the 10-to-15 percent range. “That’s good news for consumers who are between ages 55 and 65, the prime age to undertake this important planning,” Slome adds.

Access 2023 Linked Benefit LTC Price Index

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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New 1035 Exchange Guide

A new guide published by the American Association for Long-Term Care Insurance (AALTCI) kicks off a national campaign to heighten awareness for the use of 1035 exchanges for effective and tax-advantaged LTC planning.

The AALTCI Guide To Long-Term Care Planning Using Using IRS Approved Exchanges formally launches the national consumer and insurance-focused campaign.

“Section 1035 exchanges are one of least known planning strategies,” declares Jesse Slome, executive director of AALTCI. “Every insurance agent and financial professional who has prospects or clients in their 50s, 60s and 70s are going to need to familiarize themselves with the significant advantages they provide.”

“Americans have $2.8 trillion in fixed and variable annuities and we know far too few older adults have a financial strategy to deal with the real risk of needing long-term care,” Slome reports. “Many of these individuals could benefit by taking advantage of a 1035 exchange; repurposing an existing annuity into one that continues to accrue but also can provide.”

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

MESSAGE TO CONSUMERS:  The Association has made this informational guide available online.  You can read it from any device and NO SIGN-IN information is required to access and read the guide.  If you find the information of value we encourage you to discuss with your current insurance or financial professional.  Or, if you prefer, complete the online form (also on the web page) and we will connect you with one knowledgeable independent professional familiar with how these exchanges work as a benefit for consumers.

MESSAGE TO INSURANCE AND FINANCIAL PROFESSIONALS:   You may also access and read the guide online.  It can also be downloaded.   As the Association moves forward on it’s awareness efforts we will decide next steps.  Watch the Association’s website for more details.

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“One of the anticipated sessions will be a ‘how to’ session featuring one of the nation’s leading experts in the field of selling linked benefit products,” announces Jesse Slome, director of the American Association for Long Term Care Insurance.  Gene Pastula, president of San Diego-based Westland Financial Services, Inc., will deliver a 75-minute session, “How To Sell Linked Benefits; Best Ways To Get To Yes.”

The Association’s Summit takes place May 18-20, 2014 at the Westin Hotel Crown Center in Kansas City, Missouri.    The Association recently announced a special, highly discounted early registration rate of $69 that applies to registrations received by November 30, 2013.

This marks the 11th Summit organized by the Association.  The event will offer attendees the opportunity to participate in nearly 40 different workshops and keynote addresses covering the marketing and sale of both traditional long term care insurance as well as combination long term care products.   Exhibitors representing leading combination LTC insurance companies will also be present.

November 30, 2013 is the final day to register for the conference at the special $69 rate.  “Nothing will ever replace face-to-face networking with your peers from around the country,” Slome explains.  “If you want to know what’s working today, not what worked five years ago, you need to come and talk to others who are enjoying their most successful years in the long term care insurance business.”

Complete information on the 2014 National Long Term Care Solutions Sales Summit can be accessed online at the Association’s website.

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combination long term care insurance policy comparisons from AALTCI

Los Angeles; November 12, 2013 – An analysis revealing significant differences between the most popular combination long term care insurance policies helped generate widespread national news this week for the American Association for Long Term Care Insurance.

“We’ve seen an increase number of consumer inquiries about combination life insurance policies offering long term care insurance like benefits,” declares Jesse Slome, director of the American Association for Long Term Care Insurance.  “Our conversations revealed that consumers assumed these policies are all very similar in terms of key components, especially the amount of benefits they ultimately provide.  There is lots of interest in what many call ‘new and improved long term care insurance’ but there can be vast differences in ultimate benefits paid.”

Working with leading independent experts, the Association undertook an analysis of leading combination long term care insurance, also known as hybrid long term care policies.  “We found significant differences,” says Slome. “Some would pay far more if long term care services were needed, others had a higher life insurance benefit that would be paid to heirs.”

A release distribution of the analysis resulted in widespread media attention.  “Several hundred major media picked up the story including Yahoo Finance, The Wall Street Journal’s MarketWatch column, Reuters and some 200 newspapers, business journals and local television stations,” Slome reports.  “There has been a high level of interest in this as more consumers are being told about combo LTC products by their financial advisors.”

The Association’s analysis pointed to the value of getting a comparison from a knowledgeable combination long term care insurance specialist.   ”Not all financial advisors have access to products from multiple companies,” Slome adds.  To learn more about combination long term care insurance or obtain comparison quotes  from a specialist call the organization at (818) 597-3227 or visit their website at www.aaltci.org.

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“The differences can amount to tens and even hundreds of thousands of dollars of future benefits,” declares Jesse Slome, executive director of the American Association for Long Term Care Insurance.  “People wrongly assume these policies are virtually identical when nothing could be further from the truth.”

While asset based long term care insurance products offering a combination of life insurance and long term care benefits have been around for many years, numerous new policies have been or are being introduced Slome acknowledges.  “Roughly 90,000 of these asset based LTC policies were sold in 2012,” Slome reports.  That compares to roughly 330,000 traditional long term care insurance policies.

Slome shared ways to judge if comparing policies is worthwhile.  “If you are married and plan to buy policies for both husband and wife, there can be considerable differences in the future benefit amount from one insurer to the next,” Slome shared.  “Many of these policies today are marketed by financial professionals who only offer one or two policies and are not as familiar with the important differences.”

Future guarantees can vary among different asset based LTC products Slome notes.  “In future years you don’t want to find out that what you thought was guaranteed isn’t,” Slome says.   “All of these small but very important factors make it increasingly important to compare because you only purchase these policies one time.”

The Association compiles a listing of specialists experienced in asset based long term care insurance.  “Few of the insurance professionals who help advise consumers about traditional long term care insurance planning and costs really are knowledgeable about the nuances of these newer asset-based LTC products,” Slome concludes.    To connect with a specialist in this area call the organization at 818-597-3227 or visiting their website.

The post Comparing Asset Based Long Term Care Insurance Options Is Vital appeared first on American Association for Long Term Care Insurance.

2014 Long Term Care Insurance Sourcebook contains latest data and statistics

Los Angeles; August 1, 2013 –  Universal life insurance policies with optional long term care insurance are gaining consumer interest according to new research by the American Association for Long-Term Care Insurance.

“We are definitely seeing heightened interest among consumers with available savings that they can leverage to protect against the high costs associated with needing long term care,” explained Jesse Slome, executive Director of the American Association for Long Term Care Insurance.  “These policies are not for everyone and there can be significant differences between policies being offered today.”

According to a study by the Association more than half of buyers of life insurance with long term care benefit option policies were under age 65.  “Some companies have imposed age restrictions on these policies and that could be pushing down the age of average buyers,” Slome explained.  “It’s also likely that more stockbrokers and financial planners are starting to recommend these products to their younger clientele.”

A growing number of companies now offer life insurance policies that offer long term care benefits according to AALTCI.  “You used to have one or two major players but over the past few years several large insurance companies have introduced new products,” Slome noted.  “Consumers have the misperception that all policies are identical but we see some important differences that can vary.  The difference in future benefits can be quite significant.”

The AALTCI study reports that 56 percent of buyers in 2012 were age 64 or less.  The complete findings of the study will be included in the 2014 Long Term Care Insurance Sourcebook a compendium of industry research published by the trade group.  Copies of the Sourcebook cost $99.

To request a free, no-obligation policy benefit comparison from a designated life plus long-term care insurance specialist who is a member of the Association, call 818-597-3227.

The post Life Insurance With Long Term Care Insurance Benefits Studied appeared first on American Association for Long Term Care Insurance.

According to annual research conducted by the American Association for Long-Term Care Insurance women comprised just over 60 percent of new buyers the study found.

“Linked life insurance policies that offer long-term care benefits experienced significant growth in 2010,” states Jesse Slome, the national trade organization’s executive director.  “Consumers are finding these products offer a significant advantage when it comes to long-term care planning.”

Newer life insurance policies offer the ability for the policyholder to access funds should a need for long-term care occur.  “For those with sufficient savings to purchase coverage, these new forms of protection help overcome the what if I don’t need long-term care,” Slome explains.  If the policy benefits are not used for long-term care, the designated beneficiaries receive the death benefit.

According to data published in the Association’s 2011 Long-Term Care Insurance Sourcebook, over one-third (34%) of women who purchased new life+LTC policies in 2010 were between ages 55 and 64.  Nearly 40 percent were between ages 65 and 74.    Male purchasers tended to be slightly older Slome acknowledged.

“You need to have a fair amount of savings or what I call lazy money,” Slome explains.  “Lazy money consists of funds sitting in low-paying Certificates of Deposit that can be easily put to far better use on your behalf.”

The single premium face amount of just over two-thirds of new policies purchased in 2010 was over $100,000.  About a quarter of buyers opted for a face amount of over $200,000.

The complete findings are published in the Association’s 2011 Long-Term Care Insurance Sourcebook that can be obtained from any of the organizations 3,000 members.   Slome advises consumers considering long-term care insurance to carefully compare coverage with a knowledgeable professional.  ”Costs for virtually identical coverage can vary by as much as 40-to-60 percent,” he warns.

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