“Individuals mistakenly have been led to believe that long-term care insurance costs thousands of dollars,” states Jesse Slome, AALTCI’s executive director.  “A significant number of individuals today pay between $10 and $20 a week.  That’s a highly affordable way to protect $150,000 to $250,000 of future care.”

The organization analyzed data on some 93,500 new long-term care insurance buyers.  Among buyers under age 61, over one-fourth (28.1%) paid less than $999-per-year.  Fewer than one in 10 (9.3%) pay $3,500 or more annually the report notes.  “What you pay for long-term care insurance is based on things you can control and factors you can not change,” Slome explains.  “You can control and make protection highly affordable by comparing coverage, by taking advantage of discounts and by looking at newer options that were not available a few years ago.”

Age at the time of application plays an important role in determining the cost for long-term care insurance the Association study reports.  While 41.5 percent of buyers under age 61 pay between $500 and $1,499-per-year, only 20.8 percent of buyers who are ages 61-to-75 pay within this range.  “The typical buyer today is in their 50s,” Slome notes.  “That’s when you can lock-in lower costs and more important qualify for significant health discounts that you don’t lose when your health changes.”

Nearly one in 10 (9.5%) of all buyers paid $4,000 or more yearly for their insurance protection the AALTCI report indicates.  “Only six percent of buyers under age 61 pay this much,” Slome notes, “while 28.2 percent of buyers age 76 or older did.” 

AALTCI 2010 Report:  What People Pay For Long-Term Care Insurance

Premium Amount           Under Age 61           Age 61-75         Age 76 And Older

Less than $500                2.0%                        0.2%                 0.9%
$500 – $999                   26.1%                        9.5%                 9.8%
$1,000 – $1,499              15.4%                      11.3%               11.4%
$1,500 – $2,499              24.1%                      31.6%               19.5%
$2,500 – $3,499              11.8%                      20.7%               24.0%
$3,500 – $3,999                3.3%                        6.4%                 6.8%
$4000 and Over               6.0%                      14.9%               28.2%
Source:  American Association for Long-Term Care Insurance (www.aaltci.org) analysis of data based on individual Partnership policy sales, June 2010. 

Three Tips For Saving Money When Buying Long-Term Care Insurance

The American Association for Long-Term Care Insurance suggests the following tips that can help you significantly reduce the cost of insurance coverage.

1.  Leverage Your Good Health:  Insurers will require you meet certain health qualifications to obtain coverage.  Discounts are provided to those in good health and 62 percent of applicants between ages 40-49 qualified in 2009.  The percentage drops to 46% for ages 50-59 and only 38% for ages 60-69.  Once obtained, the preferred health discount is not lost when your health changes. 

2.  Right-Size Your Coverage:   Some long-term care insurance is always better than none.  Factor in other sources of income such as Social Security, pension and 401k plans that can pay costs and allow you to add money-saving options such as a 90-day deductible (Elimination Period) or consider a limited-pay plan with a Shared Care option that allows two spouses to share a common benefit pool.

3.  Compare Coverage:   Each insurer establishes it’s own rates, health standards and available discounts.  As a result, virtually equal protection from two highly-rated insurers can vary by between 30 and 80 percent.   Ask your insurance professional if they have access to policies from just one or from multiple insurers.

For more information, visit the Association’s Consumer Information Center:  http://www.aaltci.org/long-term-care-insurance/

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Researchers had identified a variant of the gene for cholesterol ester transfer protein (CETP) — involved in carrying cholesterol in the bloodstream — as being associated with a longer life span. They note that the longer you live, the more common is the favorable variant.  The incidence is 5 percent at age 50 and 35 percent at age 95. 

The new study followed over 500 people, all age 70 or older, for four years, testing their mental function and relating it to the variant of the CETP gene they carried.  Participants who carried two copies of the variant gene experienced an age-related decline in mental function that was about half as rapid as people with two normal versions of the gene, the study found. 

Individuals with two copies of the favorable CETP variant also had a reduced risk of developing Alzheimer’s disease compared to those with two normal versions of the gene, the study found.  Researchers note that the gene is a a great candidate for further research on Alzheimer’s disease and dementia. 

According to the researchers, the CETP gene variant was first identified in a population of Ashkenazi Jews, descendents of western and central Europeans. The current study was done among an ethnically diverse population of people living in the Bronx who have been followed for 25 years.

 The findings were reported in the Jan. 13 issue of the Journal of the American Medical Association. 

Reported by the American Association for Long-Term Care Insurance, the national trade organization that tracks news related to long term health care issues.

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“The long-term care insurance industry paid out $3.5 billion in benefits to individuals last year,” said Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance. The AALTCI compiled data from over 60 long-term care insurers who represent 98 percent of all policies currently in force.

“The risk of needing long-term care is higher than the risk of a serious car accident or house fire, but few people are aware of how many individuals and families already benefit from having purchased long-term care insurance,” Slome notes. “Some 400,000 new policies were issued last year alone. As more individuals become aware of, and understand the importance of, planning for long-term care needs, the number of individuals and families deriving benefit from this coverage will only increase.”

The Association’s study of claims paid to individuals revealed meaningful information for those considering a long-term care plan. According to the study, 43.0 percent of claims paid in 2007 were attributed to home care. Nearly one-third (32.9%) of claims were for assisted living and 24.1 percent covered nursing home care.

“Most people associate long-term care insurance with nursing home care, but quite the opposite is true,” explains Slome. “The vast majority of benefits paid today cover care at home or in an assisted living community.” Over 97 percent of long-term care insurance policies sold provide some form of home care benefit (86% did in 2000 and 67% in 1995).

The Association study found that most individuals receiving benefits from their long-term care insurance policies are older. Nearly a third (32.3%) of new claims in 2007 began for individuals between 70 and 79, according to the Association findings. Over half (55.2%) began for those age 80 or over but 11.5 percent were for those between 50 and 69. The youngest individual on claim (a group insured) was 23.

Reporters and other media who would like additional information or to arrange an interview with Jesse Slome, please call the Association offices at (818) 597-3227

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