Almost half of Medicare beneficiaries have either one or two disabilities. The disability risk among seniors is important information for two reasons. The first is that disabilities are a key risk that aging Americans face resulting in the need for costly care. And second, because once someone has a disability, they generally can not qualify for long-term care insurance.

The latest data is highly relevant and important to share prior to turning 65 recommends the American Association for Long-Term Care Insurance. Living a long life means the likelihood of needing aide – and that’s where planning is important.

The data reflected seniors 65 and older who had difficulty hearing, seeing, remembering, dressing or bathing. These are Activities of Daily Living used to qualify for benefits under a traditional long-term care insurance policy.

Disability Risk Among Seniors 85-Plus

The risk of disabilities grows as one ages. Research indicates that among those aged 85 and older, approximately 25% have one disability.

Top-10 Disability Risk Among Seniors

The prevalence of disability among older adults is significantly influenced by various health conditions. As individuals age, they become more susceptible to chronic diseases and disabilities that can impact their daily functioning and quality of life. Based on the information provided, the following are the 10 leading causes of disability after age 65:

1. Arthritis or Rheumatism: This condition affects joints and connective tissues, leading to pain, stiffness, and decreased mobility. It is one of the most common causes of disability in older adults.
2. Back or Spine Problems: Issues related to the back and spine, such as degenerative disc disease or spinal stenosis, can result in chronic pain and limitations in movement.
3. Heart Trouble: Cardiovascular diseases can lead to significant functional impairments due to heart failure or other heart-related issues.
4. Lung or Respiratory Problems: Conditions like chronic obstructive pulmonary disease (COPD) can severely limit physical activity and overall health.
5. Mental or Emotional Problems: Mental health conditions such as depression or anxiety can affect cognitive function and daily activities.
6. Diabetes: This metabolic disorder can lead to various complications that affect mobility and overall health.
7. Deafness or Hearing Problems: Hearing loss can impact communication abilities and social interactions, contributing to isolation and disability.
8. Blindness or Vision Problems: Visual impairments significantly affect independence and the ability to perform daily tasks safely.
9. Stroke: A stroke can lead to long-term disabilities affecting mobility, speech, and cognitive functions.
10. Cancer: Various types of cancer may cause disabilities either directly through the disease itself or indirectly through treatments that impair physical function.

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“Claim benefit payouts for policyholders with traditional long-term care insurance coverage have grown from 2020 when insurers paid out $11.6 Billion,” reports Jesse Slome, AALTCI’s director.  “The increase in benefit payouts was expected by the insurers.”

According to AALTCI’s Slome, the amount reported represents claims paid for individuals with traditional or health-based long-term care insurance.  “Data for linked-benefit policies is hard to calculate,” the long-term care insurance expert explains. “First, policies tend to need years before claims are paid to aging policyholders. In addition, there are so many different variations of these policies,” Slome acknowledges.

For 2023, the Association reports that benefits were paid to about 353,000 policyholders. “This represents a nominal increase over the prior year,” Slome shares. For 2022 AALTCI reported benefits were paid to 345,000 claimants. During the calendar-year 2020, AALTCI data reported 325,000 policyholders received claim benefits.

“Long-term care insurance benefits are mostly paid to individuals who receive benefits for qualifying care in their own home or in an assisted living facility,” Slome points out. “Benefits also are paid when policyholders require care in skilled nursing home settings.”

The AALTCI data is gathered and corroborated with leading industry actuaries including historical average annual growth rates from the last 10 years from companies’ year-end reporting data.

Access the 2024 Long-Term Care insurance Price Index and other current data and statistics at the Association’s website. The organization reports industry costs for individuals and couples at ages 55, 60 and 65. Go to 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 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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“Inflation is not the cause of rate increases,” cites Jesse Slome, director of the organization. “There are a variety of factors that make it necessary for insurers to raise rates on older long-term care policies. We wanted a current resource that provides consumers with updated and relevant information.”

According to Slome, insurers have been filing rate increase requests on certain classes of older policies. “The largest requests are associated with policies that included unlimited or lifetime benefits as well as those with a 5 percent compounded inflation growth factor.”

The Association’s website reports that 29% of rate increases were between 10 and 19% with 31% between 20 and 29%. “We do hear of significantly larger requests,” Slome notes. “We understand that people are upset when they are notified about rate increases but there are always options to mitigate the circumstances.”

The long-term care Association reports the between 50 and 60% of policyholders chose to pay the increase and keep their original policy provisions. “Clearly they are older and realize the value of what they purchased as well as the fact that they likely could no longer obtain long-term care insurance at any price,” Slome explains.

To learn more about long-term care insurance rate increases visit the Association’s updated information center.

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 hybrid long-term care solutions.  To connect to a specialist for long-term care insurance costs call 818-597-3227.

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“More than 201,000 residents and staff of long-term care facilities died from Covid, about 23 percent of all deaths which is a staggering number,” declares Jesse Slome, director of the American Association for Long-Term Care Insurance.  ”People never wanted to go to nursing homes and Covid is only making people more aware that this is not a desirable option.”

“When care is needed, people want to remain in their own home, something the long-term care insurance industry has known for decades,” Slome admits.  “But everything associated with the product category focuses on skilled care with home care listed as a secondary benefit that is included.  Try selling that something people don’t want and, oh yes, charging a whole lot of money for it.”

Nursing Home Avoidance Protection

Instead, the long-term care insurance expert has advocated positioning long-term care insurance as ‘nursing home avoidance protection.’  “You buy this coverage for the very simple reason that you do not want to go into a nursing home,” he states.  “In fact, I wish State regulators would allow individuals to buy home care insurance protection with minimal benefits for skilled care, similar to what some short-term care policies permit.”

Slome points to the failed Washington Cares program as an example.  “While there were flaws in the effort, the State clearly understood the desire and need for a benefit that paid for home care,” Slome explains.  “Long-term care facilities do everything they can to safely serve individuals and I am confident will continue to do so.”

“If long-term care insurance is to ever become a viable option for more than a very small percentage of individuals, things need to change,” Slome advocates.  “Part of that change I believe needs to be a re-branding of the category and Covid certainly provides a great opportunity to do that.”

Covid Deaths Data

The data comes from a just-published study from the Kaiser Family Foundation.  According to the report, residents and staff of long-term care facilities accounted for 201,000 Covid deaths.  That amounted to about 23 percent of all deaths (680,000).  The report acknowledged the number could be even higher due to under-reporting.  At the inception of the pandemic, nearly half of all deaths occurred in long-term care facilities.

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 hybrid LTC solutions.  To access the latest long-term care insurance statistics regarding need and insurance, visit the Association’s Data Center at www/aaltci.org/LTCFacts-2022/.

To obtain long-term care insurance costs from a long-term care insurance specialist call the organization at 818-597-3227 or visit their website www.aaltci.org.

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“In years past insurers often filed new rates for long-term care insurance,” explains Jesse Slome, AALTCI’s director.   “New rates were typically five to 10 percent higher, sometimes more.”

According to the Association’s annual Long-Term Care Insurance Price Index a 55-year-old male could pay $950 annually for a policy providing $165,000 of benefits.  A 55-year-old woman could expect to pay $1,500.  Both amounts are identical to the findings of the prior year’s price index.

“Prices for traditional long-term care insurance likely remain stable for a number of reasons,” cites Slome.  “First, insurers have a good sense of the most important factors that go into pricing this insurance.  In addition, investment returns have remained relatively stable.”  Insurers depend on investing premiums to accumulate funds to pay future anticipated claims.

The 2022 Long-Term Care Insurance Price Index reported that a couple both age 65 could expect to pay $3,750 combined.  The two policies could provide each with $165,000 of future benefits.  Adding an option that increased future benefits by three percent annually would cost the couple almost twice as much ($7,150 combined).

“Having some price stability is good,” Slome notes.  “However, consumers should not use that as a reason to delay investigating long-term care insurance costs.  What you’ll pay goes up each year you wait and one change in your health can prevent you from health-qualifying for coverage entirely.”

Data on long-term care insurance costs can be accessed on the Association’s website.  In addition, the Price Index compares costs for traditional long-term care insurance as compared to linked benefit options. To access, 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.

The post Cost For New Long-Term Care Insurance Policies Remain Stable appeared first on American Association for Long Term Care Insurance.

“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.

The post Claims Paid 2021 By Long-Term Care Insurers Grew By $700 Million appeared first on American Association for Long Term Care Insurance.

“Covid and the changing economic environment calls for consumers to take a different approach to their long-term care insurance planning,” states Jesse Slome, director of the long-term care insurance organization.  “For 2021 we are reporting premium prices for a range of benefit increase options.”

Long-term care insurance policies offer consumers the option of increasing the value of their protection.   ”Years ago, the majority of people purchased an option that increased their benefits by five percent yearly,” Slome explains.  “As interest rates dropped, this became an expensive option and more consumer started to favor the three percent growth option.  However, this too can be costly in today’s historic low interest rate climate.”

Access the 2021 Long-Term Care Insurance Price Index

Click this link to access the latest 2021 long-term care insurance statistics and data.

According to the 2021 Long-Term Care Insurance Price Index, a 55-year-old couple each purchasing an initial benefit of $165,000 could expect to pay $2,080 combined for their insurance policies.

“Adding the three percent benefit increase option more than doubles what the couple will pay each year,” Slome notes.  The 2021 pricing report found that coverage with the three percent benefit increase option would cost $5,025 annually.  Adding the five percent option would cost the couple $8,575 per-year.

Slome acknowledged that having some future growth of available benefits is of potential value to consumers.  “More is always going to be better but it is a balancing act where cost plays a major factor in the buying decision,” Slome says.  “Having some coverage is always a better plan than having none and waiting to see what the future holds puts someone at risk of facing higher premiums or the risk of being uninsurable due to health reasons.”

The long-term care insurance professional noted that consumers could benefit by considering various future inflation growth options.  “You might find that a one or two percent option is not just suitable by certainly offers some significant premium savings,” Slome concludes.

The Association posts 2021 long-term care insurance statistics and data on it’s website.  The 2021 price index is now available.

Headquartered in Los Angeles, 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.

The post 2021 Long-Term Care Insurance Price Index – For Age 55 appeared first on American Association for Long Term Care Insurance.

“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.

The post Long-Term Care Insurance Policy Persistency Exceeds 95 Percent appeared first on American Association for Long Term Care Insurance.

“Those 10 years are actually the best time to apply for and purchase long-term care insurance,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance.  “It’s when one is more likely to meet the health requirements and also to find the premiums more affordable.”

According to Slome some 55 percent of buyers of traditional long-term care insurance policies were between ages 55 and 65.  “Just over a quarter (27%) were younger and only 18 percent were age 66 or older.”

Health is an important factor in obtaining a long-term care insurance policy.  “Insurers will look at your health, the number and type of prescription medications you take as well as your height and weight,” Slome explains.  “As we age, we generally take more drugs and have more health conditions that prevent many from meeting the health qualifications for this coverage.”

Recent data shared by the organization revealed that a quarter (22.4%) of Americans between ages 49 and 70 take five or more prescription drugs every month.  “Almost half of men (46.4%) and nearly as many (43.3%) of women who are between 40 and 59 are defined as obese,” Slome adds.  “After age 65, some 30 percent of people indicate they have some physical disability and that is likely to make one ineligible to health qualify for long-term care insurance.”

To access the latest long-term care insurance statistics facts go to our home page and look under the Statue of Liberty image.

Established in 1998, the American Association for Long-Term Care Insurance advocates for the importance of planning.  AALTCI supports insurance professionals who market both traditional as well as hybrid long-term care insurance.  To get information or request long-term care insurance quotes from a specialist in your area call the organization at 818-597-3227 or visit their website at www.aaltci.org.

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“With good accuracy Swedish researchers studied over 50,076 patients,” shares Jesse Slome, director of the long-term care insurance organization.   Patients with dementia were followed starting in 2007 for a maximum of 9.7 years.

The researchers reported that the median survival time from dementia diagnosis was 5.1 years for women and 4.3 years for men,” Slome shared.  Dementia and Alzheimer’s accounts for the most common reason individuals with long-term care insurance claim benefits.  In some cases, they can amount to long-term care insurance claims that in total have exceeded hundreds of thousands of dollars.

Median survival time varied by the age at which the condition was discovered.  For example, for men, the median survival time was 6.1 years for men diagnosed between ages 65 and 75, 4.4 years when diagnosed between ages 75 and 85 and 2.8 years when diagnosed after age 85.  For women, the survival time was 7.5 years, 5.6 years and 3.6 years respectively.

“If you live a long life, the likelihood of dementia or Alzheimer’s increases exponentially and the importance of having some long-term care insurance in place is vital,” states Slome.  “The new findings from these researchers can help insurance agents better educate consumers in terms of how much coverage they may need.”  The researchers said the results are nearly identical to those of a similar study in the United Kingdom.

The Association director stressed that long-term care planning needs to begin well before there is the risk of needing care.  “Far too many people call the Association once their parent has been diagnosed with some condition and their doctor suggests they look into insurance,” Slome admits.  “Unfortunately even physicians don’t understand that long-term care insurance is only available to those who can still meet health qualifications and pass cognitive assessments.”

“If you are worried about what will happen should you ever get Alzheimer’s, the smart move is to talk to a long-term care insurance specialist to find out if you can currently qualify and how much insurance protection will cost,” Slome advises.

To learn more about long-term care planning visit the Association’s website or to connect with a specialist who can explain both traditional and hybrid products contact the Association via their website or call 818-597-3227.

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