“Women are more likely to need long-term care because they generally live longer lives,” explains Jesse Slome, AALTCI’s director. “Among women, 61% are likely to develop a chronic disability often simply due to living a long life.”

The Association director was sharing data about long-term care need and length of paid long-term care services with senior specialists who help educate consumers about the risk and need.

“Some 51 percent of women age 65 and over will need paid long-term care before they die,” Slome shared. “Meanwhile only 39 percent of men age 65 or older will need such care.”

Married people are less likely to need paid long-term care services Slome reported. “Again, it’s 51 percent of unmarried people over age 65 who will require paid long-term care in their lifetime,” Slome shared. “Whereas it’s only 43 percent for married people, part of which is likely that the healthier spouse becomes the caregiver.”

The long-term care insurance expert and advocate noted that long-term care insurance planning was off the radar during the pandemic. “We have a new generation of men and women entering the long-term care planning sweet spot. “They need information including facts and figures to understand the potential future financial risk they face,” Slome added.

To read the latest long-term care need data go to https://www.aaltci.org/long-term-care-need/.

The American Association for Long-Term Care Insurance (AALTCI) https://www.aaltci.org advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions. Access comprehensive long-term care insurance statistics and data at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2024.php.

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“If you live a long life the chances are very high that you’ll eventually require care,” explains Jesse Slome, director of the long-term care insurance organization. ”When long-term care services are needed most people depend on family members or loved ones, while others have to pay from their retirement savings or income. A small percentage of people today have purchased long-term care insurance to pay for their care.”

Long-term care insurance policies were first introduced in the 1980s and now protect several million aging Americans’ “You must secure this insurance protection when you are still able to health qualify,” stresses Slome. The ideal time to apply is between ages 55 and 65, the long-term care insurance expert points out.

“You are buying protection for your future,” Slome explains. “While some people start using their policy benefits relatively soon after buying, typically as a result of an accident or illness, most won’t qualify for policy benefits for a number of years.”

According to data just released by the Association, just over a quarter (27%) of new long-term care insurance claims begin when policyholders are between ages 80 and 84. For the first time, the organization was able to compare data for traditional long-term care insurance as well as linked-benefit long-term care. The latter typically consists of life insurance or annuities that can also provide a long-term care benefit.

“Each year the nation’s long-term care insurance companies pay out billions in benefits to seniors with this valuable coverage,” adds Craig Matesky, President and CEO of ACACIA Insurance Services. “Today, there are multiple long-term care insurance options that are affordable and more important will cover you for home care, assisted living, nursing home or memory care.”

Access the latest 2024 long-term care insurance statistics and data on the Association’s website at 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 planning and supports insurance professionals who market both traditional and hybrid LTC solutions. Jesse Slome is director and also directs the American Association for Medicare Supplement Insurance.

The post New Report Reveals Ages When Claims Begin For Long-Term Care Insurance appeared first on American Association for Long Term Care Insurance.

“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.

The post Three Top Long-Term Care Insurance Companies Grew Over Past Decade appeared first on American Association for Long Term Care Insurance.

“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.

The post Paid Long-Term Care Insurance Claims Increased In 2023 appeared first on American Association for Long Term Care Insurance.

Click to access 2024 Long term care insurance statistics

The annual Long-Term Care Insurance Price Index was pre-released today by the American Association for Long-Term Care Insurance.

“People have many misconceptions about long-term care insurance and we post data to help them better understand what can be a confusing topic,” states Jesse Slome, director of the long-term care insurance organization.

The 2024 Long-Term Care Insurance Price Index is the organization’s annual compilation of costs for both traditional and linked benefit long-term care insurance.

“First, prices for traditional long-term care insurance can vary significantly depending on which insurance company you select,” Slome points out. “You generally only buy this protection once so selecting the right insurer is of upmost importance.”

The long-term care insurance expert pointed out that the vast majority of long-term care coverage purchased in 2023 consisted of linked-benefit policies. “Consumers like the ‘don’t use it – don’t lose it’ aspect of a life plus LTC policy,” Slome agrees. “But it’s not like this comes without a cost.” The 2024 Price Index attempts to compare premium costs for virtually equal coverage under both options.

The 2024 Long-Term Care Insurance Price Index along with other statistics and data can be accessed via the Association’s website at 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 planning and supports insurance professionals who market both traditional and hybrid LTC solutions. Jesse Slome is recognized as a leading long-term care insurance expert at https://www.aaltci.org/for_media/.

To learn more or to connect with long-term care insurance specialists visit the organization’s website or call 818-597-3227.

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“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.

The post 2023 Long-Term Care Insurance Price Index Released appeared first on American Association for Long Term Care Insurance.

The overwhelming majority of consumers experiencing a premium increase on their long-term care insurance chose to pay the higher premium.  The findings of a new analysis were released today by the American Association for Long-Term Care Insurance.

“Between 50 and 60 percent of policyholders choose to keep their original policy benefit levels and pay the increased premium,” explains Jesse Slome, American Association for Long-Term Care Insurance director.  ”While no one likes to pay more money, these individuals recognize the value of this protection because they are older and thus closer to the risk of needing long-term care.”

According to the Association between 20 and 30 percent of individuals notified of an approved premium increase chose to adjust their policy provisions.  “Many buyers initially selected the 5 percent inflation growth option,” Slome notes.  “When they review their policy benefits along with their present financial situation, it often makes sense to reduce the growth factor and thus avoid the premium increase.  In some cases, they may even pay less money for their continued long-term care insurance coverage.”

Between 10 and 20 percent of consumers elect the non-forfeiture option Slome shares.  “Typically, these individuals will stop paying premiums but will still qualify for benefits should they need qualifying care,” Slome notes.  “The last time we conducted such an analysis, it was common for only 1-3 percent of policyholders to drop coverage,” Slome adds.

The long-term care insurance executive attributed the change to ‘premium increase fatigue’ as well as two other factors.  “The long-term care insurance industry has failed to convey to consumers how this protection is benefiting hundreds of thousands of families each year,” Slome shares.
“And, for some, the value of accrued benefits are perceived to be sufficient for meeting future needs. Paying continued premium is viewed as no longer making financial sense.”

Rate Increases – Long-Term Care Insurance Data

Rate Increase and other long-term care insurance statistics,  To access the latest long-term care insurance statistics go to https://www.aaltci.org/ltcfacts-2022.php.

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 access information go to https://www.aaltci.org or call the organization at 818-597-3227.

The post Rate Increases Long-Term Care Insurance; How Consumers Act appeared first on American Association for Long Term Care Insurance.

“Total national expenditures are predicted to grow to $266.2 billion by 2028,” states Jesse Slome, director of the American Association for Long-Term Care Insurance.  ”That is a 58 percent increase from the latest actual reported expenditure of $168.5 billion for 2018.”

The report predicts the national growth of expenditures for nursing care facilities as well as Continuing Care Retirement Communities.  “Total expenditures are expected to reach $210.7 billion in 2023,” Slome shared.  “The concerning aspect is that out-of-pocket expenses are expected to grow from $44.8 billion (2018) to $52.7 billion in 2023.  By 2028, out-of-pocket expenses that will be imposed on families is projected to reach $59.4 billion.”

Nursing Home Care Expenditures Data

Increased costs will account for some of the increase Slome acknowledges.  “So will the increase in the number of aging Americans who will need care,” he adds.  “The reality is that people age and need care.  When they do, someone will be facing bills.”

The Association director shared that the percentage of costs expected to be paid by Medicaid will grow.  “Nearly $50 billion was paid by Medicaid in 2018,” Slome shared.  “The projection for 2028 is that the cost will rise to $73 billion, a 59.1 percent increase.  Is this financially feasible, only time will tell.”

Slome suggested that insurance agents drip continuing information to their clients starting around age 50.  “Educating consumers is paramount to the process of creating awareness of the risk and need,” Slome advised.  “Government reports of projected out-of-pocket risks that will face individuals comes with added trust factors and can be a most valuable tool to use.”

Access Latest Long-Term Care Insurance Statistics 

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 data regarding long-term care 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.

The post Out-Of-Pocket Costs For Nursing Home Care Expenditures To Grow appeared first on American Association for Long Term Care Insurance.

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.

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“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.

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