Click to access 2024 Long term care insurance statistics

Costs for linked benefit long-term care insurance coverage are lower than a year ago according to the 2024 Long-Term Care Insurance Price Index released today by the American Association for Long-Term Care Insurance.

“Great news for aging individuals who are thinking about their risk of needing care one day,” 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.

”Interest rates are significantly higher than a year ago and that has enabled some insurers to reprice their products,” Slome explains. “Someone applying for new coverage in 2024 can obtain more coverage for less cost than basically the identical coverage purchased a year ago.”

According to the 2024 Price Index, a single 55-year-old male purchasing coverage that would provide around $520,000 of potential long-term care benefits at age 90 could expect to pay $5,022 in annual premiums. The same coverage would have cost $5,600 according to the Association’s 2023 LTC Price Index.

“Savings were higher for women according to our analysis and those who paid for coverage with a single lump sum would enjoy greater savings this year,” Slome added.

“There are more insurers offering various types of linked benefit products that combine life insurance with the potential for long-term care benefits,” Slome explained. “There are significant differences between many of these products and going on price alone or just a single recommendation from your financial representative isn’t always the best course of action.”

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. To learn more or to connect with linked-benefit long-term care insurance specialists visit the organization’s website or call 818-597-3227.

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“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.

The post 2023 Linked Benefit Long-Term Care Insurance Prices Up To 15% Lower appeared first on American Association for Long Term Care Insurance.

“Linked benefit long-term care insurance is now the favored choice of consumers buying protection,” states Jesse Slome, director of the American Association for Long-Term Care Insurance.  ”However, there are many things consumers don’t know about these products.  The Association’s new resource center will be designed to provide relevant information and address the questions and concerns we regularly receive from individuals.”

Slome noted that consumers mistakenly assume these products are relatively uniform.  “That’s simply not the case,” the long-term care insurance expert explains.  “There can be significant differences in pricing but more important in available plan benefits and options.”

The Association’s new resource shares comparisons of four leading linked benefit insurers.  “We give an example of coverage for a 55-year-old male,” Slome notes.  “Using the same policy design parameters, the maximum available long-term care benefit ranged from $568,801 to as much as $753,627   Likewise cash surrender values and the death benefits all varied.  These are all important factors for consumers to understand and evaluate when purchasing this coverage.”

“It almost never pays to switch policies once you’ve purchased, so doing it correctly the first time is of paramount importance,” Slome advises. “The contract governs everything about this coverage especially how benefits work and how much is paid out.  Too few people ever read the contract until they have a need for care which typically won’t happen for years.”

To access the new linked-benefit long-term care resource center go to www.aaltci.org/best-linked-benefit-long-term-care-insurance.

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of long-term care planning and supports insurance professionals who market both traditional and linked benefit LTC solutions.   To obtain linked benefit LTC comparisons and compare costs find a long-term care insurance specialist by calling the organization at 818-597-3227 or visit their website www.aaltci.org.

The post Association Launches New Linked Benefit Resource Center appeared first on American Association for Long Term Care Insurance.

“The number of in-force policies was approaching 600,000 in 2019 and keeps growing each year,” explains Jesse Slome, director of the long-term care insurance organization.  “Linked-benefit or hybrid policies are increasingly popular among those individuals who want some protection against future long-term care costs.”

According to the Association, linked benefit policies have overtaken traditional long-term care insurance policies in terms of annual sales.  ”They are two very different products each with some very specific advantages and consumers would be well advised to compare the virtues of both,” advises Slome.

The organization recently published the 2021 Long-Term Care Insurance Price Index.   Part of the study compared costs for traditional LTC insurance versus a hybrid or linked-benefit life insurance policy.

“A single male age 55 would pay $950 annually for a traditional long-term care insurance policy that offered a $165,000 potential pool of benefits.” Slome reports.  According to the AALTCI 2021 Price Index, yearly premiums for a linked-benefit life insurance policy that offered a $167,000 pool of LTC benefits as well as a minimum death benefit of $167,000 would cost $5,010 annually.

The Association posts 2021 long-term care insurance statistics and data on it’s website.  The 2021 price index for consumers ages 55 and 65 is also now available.

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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