“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.

“More consumers have been calling with questions about these increasingly popular options but they clearly don’t understand there can be significant differences between policy costs and benefits,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance.  “Often they are presented with one plan option and that may or may not be the best option available for their future wants and needs.”

The Association has created a new presence on the organization’s website that spells out seven differences between available hybrid plans.

“Our goal is simply to make consumers aware of the differences,” Slome notes.  “You only buy long-term care insurance protection one time and so it is vital to get as much information as possible before you spend what can be a considerable amount of money.”

The long-term care insurance expert points out some of the significant differences include how one is ultimately paid benefits.  “Some policies offer a limp sum cash payment once you meet the claim qualifications,” Slome explains.  “Others are more restrictive and reimburse and may have requirements regarding who can provide care.”

Most hybrid long-term care policies are life insurance policies.  “The ability to have a death benefit paid to beneficiaries is something that makes these attractive to consumers,” Slome notes.  “One policy will provide a death benefit greater or equal to what you paid in. Another will have lower death benefit but higher LTC benefit amounts.”

To learn more about hybrid long-term care insurance visit the organization’s website.  The American Association for Long-Term Care Insurance advocates for the importance of planning and supports insurance professionals who market 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.

The post Hybrid Long Term Care Insurance: Read 7 Plan Differences appeared first on American Association for Long Term Care Insurance.