“Mutual of Omaha, Northwestern Mutual and New York Life all reported more covered lives than a decade ago,” shares Jesse Slome, director of the long-term care insurance organization. “Unfortunately, companies that were once leaders in the industry have long ceased offering new policies and, as a result, their lives in force have decreased over the same period.”

According to Slome and analysis reported in 2023, Mutual of Omaha and Northwestern Mutual both had 100,000 additional covered lives compared to what they reported in 2013. The largest company in terms of covered long-term care insurance lives, Genworth a top long-term care insurance provider, reported about 200,000 fewer lives in force for the same period.

“It is important for consumers as well as insurance professionals to understand that even when a company ceases offering new policies, existing policies stay on the books and are serviced when claims are filed,” Slome adds. “The past decade has definitely been difficult for some insurers offering traditional long-term care insurance. But, it is important to recognize that some insurers have reported growth.”

For example, Slome notes that Mutual of Omaha which had 110,664 lives in force as reported in 2013, reported 212,213 lives a decade later. “Some may view this as slow growth but it’s quite the contrary,” Slome explains. “While long-term care planning is something every aging American should undertake, long-term care insurance is a viable option for a specific and rather small segment of the overall population.”

Top Long-Term Care Insurance Companies Report – See Complete Data

Access the complete data regarding leading long-term care insurers lives in force at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2024.php#LongTermCareInsurers-Lives.

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. Access the latest long-term care insurance statistics at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2024.php.

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“In 2019 the long-term care insurance companies paid out $11 billion in claim benefits to some 310,000 individuals,” reports Jesse Slome, AALTCI’s director.   ”That represents a 35.11 percent increase over the $8.14 billion paid out five years earlier in 2015.”

Long-term care insurance claims continue to increase as more Americans who own this valuable coverage age and require care.  The Association reports annual claim benefits paid out to individuals who receive benefits for qualifying care in their own home, in assisted living facilities or in skilled nursing home settings.

“The number of individuals who received benefit payments has grown as policyholders age,” Slome cites.  “Long-term care insurance is something you buy generally in your 50s and 60s fully expecting that if you live a long life, you’ll need care one day.  Insurers understand and expect this as well.”

The majority of long-term care insurance claim benefits are paid to individuals who purchased traditional long-term care insurance policies.  “While the majority of policies purchased today are life and annuity policies that offer the option for a long-term care payout, there are relatively few claims apparently for LTC -related benefits,” Slome points out.  “Hopefully one day as that segment of the industry grows such information will be available to demonstrate to consumers the value of this protection.”

Data on long-term care insurance claims paid can be accessed on the Association’s website.  To see 2020 statistical reports go to https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2020.php and from that page one can access data from prior years.

Established in 1998, 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 for no-cost, no-obligation long-term care insurance costs quotes and policy comparisons of both traditional and linked benefit long-term care insurance options.

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The long-term care insurance industry paid $9.2 billion in claim benefits in 2017 according to a study by the American Association for Long-Term Care Insurance.

“The nation’s long-term care insurance companies paid more in claims to more people,” shared Jesse Slome, director of long-term care insurance organization.   The Association just added the data via a graphic illustration to their online LTC Facts webpage.

“Some 295,000 individuals were receiving claim payments on the date we designate every year for our analysis,” Slome added.  “So, actually, the number of individuals benefiting from this important protection is higher.”  The Association picks one specific date (December 31st) of each year for the report of claimants paid.

The rational for this choice Slome explains is to provide a reasonable and conservative portrait of the industry.  “There are people who start claims and end claims every day, so the actual number of policy beneficiaries would be much higher,” he acknowledged.  “But, it would also be a very hard number to gather so we established a single date as a consistent point of reference.”

Slome noted that many consumers have the mistaken belief that insurance companies do not pay claims.  “We undertake this yearly study to demonstrate that not only are insurers paying claims, but both the dollars paid and the number of individuals receiving benefits are growing,” the long-term care insurance expert notes.  “The growth of both numbers is anticipated by the companies, a fact that policyholders are aging and thus more likely to need care and trigger their policy.”

A graphical portrayal of the claimant data can now be seen via the long-term care insurance facts page on the Association’s website which can be accessed at www.aaltci.org/LTCFacts.  “We strive to continually add relevant information for consumers and those interested in the topic,” Slome concluded.

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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