“Premiums for buyers are virtually identical to last year; some are actually slightly lower,” reports Jesse Slome, director of the organization.  “However, the spread between the lowest and highest prices for basically identical policy coverage has grown.”

According to the annual analysis, a 55-year-old male purchasing $165,000 of immediate benefits could expect to pay $900 a year. In 2022, the organization reported premium costs of $950. This year, adding an inflation growth option that increased available benefit levels by 3 percent yearly would cost $2,100, a $100 decline from the prior year. “The additional cost reflects the fact that policy benefits will be worth over $400,000 at age 85 and even more if care is needed after that,” Slome explains.

Women continue to pay significantly more for long-term care insurance. “Costs for a 55-year-old female applicant purchasing the same level of benefits would be $1,500 and $3,600,” Slome shares. A year earlier the premiums reported in the analysis were $1,500 and $3,700 respectively.

The 2023 Long-Term Care Insurance Price Index reports available costs for men, women and couples at ages 55, 60 and 65. “We strive to show that there isn’t one fixed option and that coverage can be less costly than many people perceive,” Slome adds. “We show multiple levels of inflation protection which, while important, will significantly add to the yearly cost of coverage.”

Adding a 3 percent inflation growth option to base coverage tends to double the premium cost according to AALTCI. “It will be interesting to see how consumers now deal with concerns about future inflation,” Slome says. “And, will rising interest rates give one or more insurers incentive to actually lower premiums going forward?”

The most notable difference from prior reports is the spread in costs between the lowest and highest priced policies on the market. “In some cases, one insurer literally charges more than twice the cost of another for virtually identical coverage,” Slome reports. “I am not sure what accounts for such a significant difference but it reinforces our belief that in 2023 consumer should do comparison shopping before making a decision.”

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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“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.

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CLICK TO ACCESS 2022 Long-Term care Insurance Statistics

The 2022 price index for new long-term care insurance policies was published today by the American Association for Long-Term Care Insurance (AALTCI).

“Prices for new long-term care insurance have remained stable,” reports Jesse Slome, AALTCI’s director.   The annual report analyzes various standard policy levels for individuals who are ages 55, 60 and 65.

According to the 2022 Long-Term Care Insurance Price Index a traditional policy valued at $165,000 in benefits can cost $950 annually for a 55-year-old male.   The equivalent coverage for a 55-year-old woman is $1,500.

“The index looks at policy costs available to the largest number of prospective individuals,” Slome explains.  “There definitely were options that could cost significantly more but that dissuades consumers from considering this important protection,” Slome adds.  The policy cost analysis found that costs between average and highest available policies could range from20 to 50 percent.

2022 Price Index – Rates Stable

“Prices for traditional long-term care insurance remained stable to last year for a number of reasons,” cites Slome.  “Insurers committed to the market have experience when evaluating the factors that go into pricing this insurance.”   Today, policies tend to limit the level of protection available with consumers willing to assume some of the financial responsibility the long-term care insurance expert adds.

“In addition, investment returns have remained relatively stable,” Slome adds.   Insurers depend on investing collected premiums.  “Premiums paid by policyholders only account for part of the dollars that insurers accumulate to pay future anticipated claims,” he notes.

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).

The 2022 Long-Term Care Insurance Price Index data can be accessed on the Association’s website.  The report 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 2022 Price Index For Long-Term Care Insurance Released appeared first on American Association for Long Term Care Insurance.

“The costs for virtually identical coverage can be significant,” states Jesse Slome, director of the long-term care insurance organization.  The organization just released pricing for 65-year olds examining costs for single men, single women and couples where both parties obtain the coverage.

“A 65-year old couple can pay 46 percent more based on which company they select,” Slome notes.  “The spread between the lowest priced and highest priced policy compared by the organization was as high as 84 percent for a 65-year-old woman.”

The organization analysis reported expected costs for various policy options.  “This year we especially looked at the inflation growth option which can literally double or even triple the base cost of this insurance policy,” Slome explains.  The organization provides real examples of policies with various levels of future benefit growth.

Access 2021 Long-Term Care Insurance Price Index

According to Slome, traditional long-term care insurance policies offer consumers the option of increasing the value of their protection.   ”Years ago, many selected the option that increased their benefits by five percent yearly,” the long-term care insurance expert notes.  “More recently consumers started to favor the three percent formula.  However, this too can be costly in today’s historic low interest rate climate.”

The 2021 Long-Term Care Insurance Price Index reports that a 65-year-old couple each purchasing an initial benefit of $165,000 could expect to pay $3,750 combined for their insurance policies.

“If the couple chooses to add a three percent benefit increase option, their yearly cost more than doubles,” Slome reports.  The 2021 pricing report found that coverage with the three percent benefit increase option would cost $7,150 annually.  Selecting the five percent option would cost the couple $9,675 combined per-year.

Considering various future inflation growth options can benefit consumers suggests AALTCI.  “Working with a knowledgeable long-term care insurance specialist can be highly beneficial in terms of knowledge and savings potential,” suggests Slome.  To view 2021 long-term care insurance prices and statistics and data visit the organization’s website.

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.

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“There are indeed often overlooked ways that couples and partners living together can save on this important protection,” explains Jesse Slome, AALTCI’s director.

For couples Slome suggests considering a long-term care insurance policy that offers a shared care benefit option.  “The shared care rider typically allows one spouse to double their benefit life-span getting as much as twice the protection and saving money in the process,” Slome notes.  “What’s mine can also be yours is the simplest way to explain this option.”

The long-term care insurance expert explains how the couples can benefit.  “Instead of two plans each with a maximum available benefit pool of $360,000, adding the shared care option can enable each spouse to share a joint maximum of up to $720,000 available to each,” Slome notes.

According to the Association’s 2020 policy analysis, two 55-year spouses each buying separate policies with $720,000 of benefits available to them at age 85 could pay $5,700 annually.  “Taking advantage of the shared care benefit option will save $1,000 or more and still give each spouse access to that $720,000 benefit pool at age 85,” the AALTCI director reports.

Shared care provisions can vary by insurance company and state regulations points out George Mellendorf, President of LTC Solutions, a national distributor of individual and multi-life long-term care insurance headquartered in Cape Coral, FL.  “Details are spelled out in the policy contract but you generally don’t get that until after you are approved and the policy is issued,” Mellendorf explains.  “The differences can be significant.”

As an example, an insurer such as Thrivent enables the benefit partner to purchase additional benefits without additional health underwriting.  “If one insured qualifies for the waiver of premium because they are on claim, a policy can waive the premium for the spouse,” Mellendorf adds.  “All of these small but important contractual provisions can be exceedingly meaningful.  They are ways to benefit and also save.”

The shared care benefit rider is available to married couples.  “In addition, state and domestic partners that are named in a valid certificate or license by the state can qualify,” Slome shares.  “Companies may allow two individuals living together for a period of time in a committed relationship to qualify.”

Couples and partners wanting to learn more about long-term care insurance costs and ways to save can connect with an independent LTC insurance specialist by visiting the American Association for Long-Term Care Insurance website or by calling the organization at 818-597-3227.

Established in 1998, AALTCI advocates for the importance of protecting against the real risk of needing long-term care and supports insurance professionals who market traditional and linked-benefit LTC insurance solutions.

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“It is my pleasure to speak to caregivers serving consumers and families with a member suffering from Alzheimer’s Disease,” shared Slome, AALTCI’s director.  “This disease ravages millions of Americans and impacts their families and loved ones.”

As part of the presentation, Slome shared an overview of the role played by long-term care insurance, conveyed the latest data regarding long-term care insurance buyers and claimants.  “Alzheimer’s disease (AD) and related dementia issues comprise the largest claims that long-term care insurers pay every year,” Slome noted.  “If you live a long life, the chances of needing long-term care increase significantly as does the risk of suffering from AD.  There are so many long-term care insurance professionals who have been personally touched by this and thereby become passionate advocates for this important protection.”

The presentation What Caregivers Should Know About Long-Term Care Insurance is available for viewing online via the Alzheimer’s Federation website.  To access go to https://www.youtube.com/watch?time_continue=394&v=uayU-PXb4FQ.

The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning.   Established in 1998, the organization connects consumers with knowledgeable professionals who are independent advisors for no-cost, no-obligation long-term care insurance quotes and policy comparisons.

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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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“Consumers are not aware of ways to save on long-term care insurance and regrettably many agents do not share an opportunity worth considering,” shares Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).   Slome was discussing long-term care planning with consumers seeking to purchase coverage for the first time.

“A 55-year old couple is typically presented insurance coverage that includes an annual three percent growth of benefits,” Slome explains.  “But there are two options some insurers offer that can reduce the cost by 15 percent yearly.”  Over many years, the expert shared a consumer could be expected to save between $8,000 and $10,000.

Slome shared the example of a husband and wife who each purchase a policy with an initial pool of benefits equal to $164,000.  “Because costs are very likely to rise, it makes sense to add a three percent growth of benefits option that will increase their total potential benefit pool at age 75 to $575,000.”   The annual cost for the policy will be about $1,850 for the couple assuming their health is good when they apply.

“We hear from consumers who are typically shown a policy where the benefits increase longer than 20 years and that costs more,” Slome explained.  An identical policy that does not cap the benefit growth after 20 years will cost $2,150 yearly for the couple.  “If saving money is important, which it often is when you are buying an optional product like long-term care insurance, this can be a prudent way to plan and save,” Slome suggested.

Not all long-term care insurance companies offer this option Slome shared.  “That’s one of the many reasons we recommend working with a knowledgeable LTC specialist who will educate you and have access to the leading and more innovative policies,” he added.

To obtain long-term care insurance costs from a specialist, contact the American Association for Long-Term Care Insurance by phone at 818-597-3227 or click the request a quote button on the Association’s website.

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Jesse Slome, long term care insurance expert

Los Angeles, CA – February 10, 2017 – The nation’s long term care insurance companies paid $8.65 Billion in claim benefits to some 280,000 individuals in 2016 according to the American Association for Long-Term Care Insurance.

“The total of all benefits paid increased by over six percent and the number of long term care insurance policyholders on claim grew by roughly 20,000,” reports Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI), the national trade group that reports annual claims data.   In 2015, AALTCI reported total claims amounted to $8.15 Billion paid to some 260,000 individuals.

“The number of individuals are being paid benefits because they purchased a traditional long-term care insurance policy increased by nearly eight (7.7) percent,” Slome explains.   Without insurance to pay some or all of the the cost, Slome acknowledges the caregiving responsibility often falls on elderly spouses or adult children of aging parents.

“It’s more than just money that long term care insurance provides,” Slome adds.  “It’s as much about having control and choices, while protecting your retirement plans and lifestyle,” Slome notes.   ”I like to tell consumers who are deciding if this is a prudent move, that having even some long-term care insurance in place allows loved ones to care about you rather than being forced to care for you.”

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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Jesse Slome, long term care insurance expert

A percentage of individuals who purchased long-term care insurance policies have or are facing increases in the premiums they pay for this important coverage.  Reasons for the rate increases were shared by the director of the American Association for Long-Term Care Insurance.

“No one likes to pay more a fact that’s understandable whether we are talking about a dozen eggs or an insurance policy,” shares Jesse Slome, director of the American Association for Long-Term Care Insurance.  Slome was sharing reasons for rate increases with leading insurance professionals who market traditional long-term care insurance policies.

“Interest rates or investment return is vitally important,” Slome explained.  “Years ago when interest rates were higher, an insurance company easily assumed a five percent interest rate when it priced a policy for a 55 year old.  If the actual interest rate was closer to say one percent, and assuming every other actuarial assumption was correct, they would need a 50 percent or greater premium increase to pay out future claims.”

Actual claims have also been higher than anticipated, Slome notes citing testimony by Dr. Marc Cohen to the U.S. Subcommittee on Government Operations of the Committee on Oversight and Government Reform.

“The good news for consumers is that insurers are paying out more money to people needing long-term care,” Slome reports.  “But that puts pressure on insurers to increase costs to make sure they can sufficiently pay future claims.”  Between 2010 and 2014, the actual to expected incurred ration has increased from 111 percent to 124 percent.

Slome shared two important pieces of information with agents who are addressing rate increases with their clients.

“First, most consumers perceive it’s a take it or leave it situation, when they have options available to avoid the rate increase,” Slome shared.  “Most people will take this as an opportunity to re-assess their needs, their overall retirement assets and their long-term care insurance policy coverage.  Some will end up keeping reducing their coverage and end up paying less money that they are currently paying.”

The national long-term care insurance expert also noted someone who bought a typical LTC insurance policy at age 60 and becomes disabled 20 years later, will recoup all of their policy premiums in roughly five months of paid care,.  “If they faced a 50 percent rate increase after 10 years, they would still recoup the cost  within seven or eight months of receiving qualifying paid care,” Slome added.

Established in 1998, the American Association for Long-Term Care Insurance creates heightened consumer awareness for the importance of long-term care planning and supports professionals who market the range of long-term care insurance solutions.  For more information or to request long-term care insurance costs from experienced agents go to www.aaltci.org.

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