“Inflation is not the cause of rate increases,” cites Jesse Slome, director of the organization. “There are a variety of factors that make it necessary for insurers to raise rates on older long-term care policies. We wanted a current resource that provides consumers with updated and relevant information.”

According to Slome, insurers have been filing rate increase requests on certain classes of older policies. “The largest requests are associated with policies that included unlimited or lifetime benefits as well as those with a 5 percent compounded inflation growth factor.”

The Association’s website reports that 29% of rate increases were between 10 and 19% with 31% between 20 and 29%. “We do hear of significantly larger requests,” Slome notes. “We understand that people are upset when they are notified about rate increases but there are always options to mitigate the circumstances.”

The long-term care Association reports the between 50 and 60% of policyholders chose to pay the increase and keep their original policy provisions. “Clearly they are older and realize the value of what they purchased as well as the fact that they likely could no longer obtain long-term care insurance at any price,” Slome explains.

To learn more about long-term care insurance rate increases visit the Association’s updated information center.

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 connect to a specialist for long-term care insurance costs call 818-597-3227.

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“More than 201,000 residents and staff of long-term care facilities died from Covid, about 23 percent of all deaths which is a staggering number,” declares Jesse Slome, director of the American Association for Long-Term Care Insurance.  ”People never wanted to go to nursing homes and Covid is only making people more aware that this is not a desirable option.”

“When care is needed, people want to remain in their own home, something the long-term care insurance industry has known for decades,” Slome admits.  “But everything associated with the product category focuses on skilled care with home care listed as a secondary benefit that is included.  Try selling that something people don’t want and, oh yes, charging a whole lot of money for it.”

Nursing Home Avoidance Protection

Instead, the long-term care insurance expert has advocated positioning long-term care insurance as ‘nursing home avoidance protection.’  “You buy this coverage for the very simple reason that you do not want to go into a nursing home,” he states.  “In fact, I wish State regulators would allow individuals to buy home care insurance protection with minimal benefits for skilled care, similar to what some short-term care policies permit.”

Slome points to the failed Washington Cares program as an example.  “While there were flaws in the effort, the State clearly understood the desire and need for a benefit that paid for home care,” Slome explains.  “Long-term care facilities do everything they can to safely serve individuals and I am confident will continue to do so.”

“If long-term care insurance is to ever become a viable option for more than a very small percentage of individuals, things need to change,” Slome advocates.  “Part of that change I believe needs to be a re-branding of the category and Covid certainly provides a great opportunity to do that.”

Covid Deaths Data

The data comes from a just-published study from the Kaiser Family Foundation.  According to the report, residents and staff of long-term care facilities accounted for 201,000 Covid deaths.  That amounted to about 23 percent of all deaths (680,000).  The report acknowledged the number could be even higher due to under-reporting.  At the inception of the pandemic, nearly half of all deaths occurred in long-term care facilities.

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 long-term care insurance statistics regarding 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.

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“The number of in-force policies was approaching 600,000 in 2019 and keeps growing each year,” explains Jesse Slome, director of the long-term care insurance organization.  “Linked-benefit or hybrid policies are increasingly popular among those individuals who want some protection against future long-term care costs.”

According to the Association, linked benefit policies have overtaken traditional long-term care insurance policies in terms of annual sales.  ”They are two very different products each with some very specific advantages and consumers would be well advised to compare the virtues of both,” advises Slome.

The organization recently published the 2021 Long-Term Care Insurance Price Index.   Part of the study compared costs for traditional LTC insurance versus a hybrid or linked-benefit life insurance policy.

“A single male age 55 would pay $950 annually for a traditional long-term care insurance policy that offered a $165,000 potential pool of benefits.” Slome reports.  According to the AALTCI 2021 Price Index, yearly premiums for a linked-benefit life insurance policy that offered a $167,000 pool of LTC benefits as well as a minimum death benefit of $167,000 would cost $5,010 annually.

The Association posts 2021 long-term care insurance statistics and data on it’s website.  The 2021 price index for consumers ages 55 and 65 is also now available.

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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“The cost for long-term care insurance is based on your age when you apply among other factors,” explains Jesse Slome, director of the long-term care insurance organization.  “Each year you wait is going to cost you more.”

According to an analysis conducted by the Association, a 55-year-old couple who both are applying, would face a 49.9 percent increase in costs if they delayed for 10 years.  The cost difference would be 100.8 percent if they waited 15 years.

“But, this assumes insurance companies maintain the current rate levels in the future,” Slome notes.  “That hasn’t happened and so these numbers are likely the minimum increase outr hypothetical couple would face.”

Slome points out other risks that waiting can result in.  “Your health is a most important factor and it’s likely not going to get better as you enter your 60s and 70s,” Slome adds.  “You risk being declined completely or having to pay a higher premium because you are classified as more of a health risk.  Finally, there’s the risk of losing the couple’s discount due to the death of one spouse, divorce or a denial of coverage for one of the spouses.”

The organization’s study looked at data for issue ages 55, 60, 65 and 70.  A chart shows the price increase effect of waiting 5 years, 10 years, 15 and 20 years. To see the cost of waiting data from the Association’s 2021 analysis go to https://www.aaltci.org/ltcfacts-2021.

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.

The post Long-Term Care Insurance Cost Of Waiting Index Released appeared first on American Association for Long Term Care Insurance.

“The tax advantages and long-term care planning options for businesses can be significant,” says Jesse Slome, director of the American Association for Long-Term Care Insurance.  “Tax deductibility is now possible with some of the hybrid long-term care policies people are increasingly purchasing.”

A hybrid long-term care policy combines the benefits of life insurance or an annuity with long-term care benefits.  “If it turns out that long-term care (LTC) is not needed, the life portion pays a death benefit to the designated beneficiary when the insured passes away,” Slome explains.

All traditional long-term care insurance policies and a limited number of hybrid policies attached to life insurance with separately identifiable LTC premium components will offer tax deductibility.  “Businesses formed as C-Corporations enjoy the most significant tax benefits,” Slome notes. Some 90 percent of C-Corps have fewer than 100 employees according to Census data.  “Every small and mid-sized business owner looking for tax and planning advantages would benefit by learning more,” he adds.

According to the Association, an increasing number of insurance companies are offering hybrid long-term care options.  The plans can vary however in terms of meeting the criteria for tax deductibility, policy costs as well benefit provisions.  ”It makes comparing the available options most worthwhile,” Slome advises.

Among hybrid long-term care policies, potentially significant differences include how the insurer will eventually pay claims.  “The differences can vary most in terms of how home care benefits are paid,” Slome points out.  “Some policies utilize a reimbursement formula with specific contractual limitations regarding who can provide care.  Alternatively, a cash benefit method provides payments without such limitations including the ability to pay family members who are providing care.”

“Cash payments provide the greatest flexibility and possibilities when care is needed,” explains Tony Massenelli, Director, Long-Term Care Sales for Nationwide, a leading provider of hybrid long-term care solutions. “One of our plans provides a retroactive lump-sum cash payment for home care back to day-one after the 90-day elimination or deductible period is met.”

Other differences include options that can increase the future value of available benefits. “An inflation growth option can address the risk of rising care costs,” adds Slome who notes that most insurers offer a fixed rate formula.  “Nationwide’s CareMatters II policy also offers an inflation option tied to the increase to U.S. medical care costs, an option that a number of long-term care insurance specialists find is more relevant for their clientele.”

To learn more about both traditional or hybrid long-term care insurance visit the American Association for Long-Term Care Insurance website.  To receive no-obligation comparisons and long-term care insurance quotes from an independent specialist, call the organization at 818-597-3227.

About the American Association for Long-Term Care Insurance.   Founded 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.   Visit https://www.aaltci.org for more information.

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“While the majority of agents still come to the person’s home or meet in their office, the trend is definitely moving in the direction of utilizing technology,” explains Jesse Slome, director of AALTCI.  “Selling over the phone is far more time-efficient for the agent and many consumers who we speak with would prefer not having an insurance agent come to their home.”

The Association director noted that over 300 insurance agents participated in the online survey.   “Many of the agents who sell 10 or more policies yearly now do so exclusively over the phone,” Slome noted.  “Some sell hundreds of policies each year this way so I couldn’t guestimate what percentage of overall sales are made this way.”

The survey asked agents their primary source of leads.  Nearly a quarter (22.4 percent) reported that client referrals were their primary source.  The largest percentage (40.5 percent) partner with other insurance agents or get their leads by working together with centers of influence such as accountants, estate planning attorneys and financial advisors who do not offer insurance products.

Less than one in 10 agents (6.6 percent) shared that they purchased leads.  “Purchasing leads today can be quite costly,” Slome shared.  “Leads generated can easily cost $50 or more and that can add up quickly especially since many people want some simple pricing information and others may not be able to health-qualify for long-term care insurance coverage.”

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 quotes and policy comparisons.

Jesse Slome is founder of the organization and currently serves as the director for AALTCI as well as the American Association for Medicare Supplement Insurance as well as the American Association for Critical Illness Insurance.

The post Long term care insurance sales and leads study appeared first on American Association for Long Term Care Insurance.

“All businesses evolve and change, what’s important is understanding what’s taking place and being positioned to take advantage of those changes,” explains Jesse Slome, director of AALTCI.  The organization recently surveyed over 1,000 insurance professionals who have prior experience selling both traditional and linked-benefit LTC insurance policies.

“Sales of linked-benefit products clearly now dominate the landscape,” Slome shared with insurance professionals on a morning call.  “Nearly half of the survey respondents predicted that in five years, their sale of traditional products will be lower while their sale of linked benefit products will be higher.  And, almost one in 10 (7.5 percent) predicted that traditional products will no longer be available and that all long-term care insurance sales will be linked benefit products.”

Slome noted an increased interest among reporters with the State of Washington’s initiative that will provide a long-term care benefit for residents.  “I see a negative short-term impact but a longer-term opportunity for change and growth,” Slome added.  “First, we’ll have to see if the concept spreads to other states including some of the larger ones like New York and California.  There are strong advocates for programs like this and few detractors and little opposition from younger taxpayers who will be paying the cost, so we will see.”

A state-based universal long-term care benefit will give many people the sense that their planning is taken care of.  “For many, it will be a check-mark, that they now have a long-term care plan,” Slome cautions.  “But longer term, if there’s mass adoption of such a plan, there will inevitably be space for a supplemental insurance plan similar to the way Medicare Supplement insurance is now owned by 14 million Americans.  So, longer term, there’s cause to be optimistic.”

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 quotes and policy comparisons.

Jesse Slome is founder of the organization and currently serves as the director for AALTCI as well as the American Association for Medicare Supplement Insurance as well as the American Association for Critical Illness Insurance.

The post Long-Term Care Insurance Trends Impact Marketplace appeared first on American Association for Long Term Care Insurance.

“Nearly half of the 333 agents responding to the survey expect sales of traditional long-term care insurance policies will be higher,” explains Jesse Slome, director of AALTCI.  The organization surveyed over 1,000 insurance professionals who have prior experience selling both traditional and linked-benefit LTC insurance policies.

Only 20.8 percent of the survey participants expected lower sales this year according to the study’s findings.   “There was even greater optimism for the sale of linked-benefit policies,” Slome shared.

The survey found that 92.8 percent expected sales of linked-benefit LTC policies would be equal to or higher than their prior year’s sales.   “In terms of expecting their personal sales to increase, some 65.8 percent expected they would sell more linked-benefit LTC policies in 2019 than they did in 2018,” Slome shared.

Optimism Extends Into The Future Survey Finds

The survey queried participants about their outlook five years into the future.  “Overall, there was great optimism for the future of the industry and their own personal sales,” Slome notes.  Some 43.1 percent of the survey’s respondents expect that in 2023, their sales of both traditional and linked-benefit policies will be higher than today.  Only 6.6 percent expected their sales of both will be lower.

A minority of respondents (7.5 percent) expressed that by 2024 they expected that traditional long-term care insurance products would no longer be available and that all sales would be linked-benefit long-term care offerings.

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 quotes and policy comparisons.

Jesse Slome is founder of the organization and currently serves as the director for AALTCI as well as the American Association for Medicare Supplement Insurance as well as the American Association for Critical Illness Insurance.

See Survey Participant Data – How Many Years / How Many Policies Sold

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Price remains a major reason millions of American couples forgo purchasing long-term care insurance.  “It’s pretty simple, this is an optional purchase and many people today just don’t want to spend $300 or more a month for something they feel they might never need or use,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance.

“I don’t blame consumers.  The problem in my opinion continues to lie with the fact that many who take the initiative to even consider this important protection are shown what I call an ‘off the shelf’ solution,” Slome cites.  By that he refers to a policy that pays an initial facility daily benefit of $150-per-day, will provide care for 3 years and includes a three percent inflation growth option.  “The average cost for such coverage according to our 2019 price analysis of leading insurers can range from about $3,500 a year to well over $10,000 a year for virtually the same level of coverage,” Slome explains.

The Association director maintains there are smarter ways for couples to approach long-term care insurance planning.  “By smarter, I mean saving money and having some insurance protection in place because some protection is always going to be better than having none,” he advises.

Slome suggested two options that were included in the Association’s 2019 Price Index analysis.  “The three percent inflation growth option is an arbitrary recommendation made by your agent and often cited by many well-meaning media,” Slome notes.  “But it’s nothing more than a guess and an expensive one that prices many people out of the long-term care insurance market.”  Instead Slome notes that reducing the option from three to two percent can save a 60-year-old couple 20 percent annually.  “Inflation’s been tame for the past decade and of course no one can predict the future but even if you have to supplement future care costs from your Social security or retirement assets, that’s going to be doable.  And, if inflation increases, well then so typically does the value of your assets and the income one earns from CDs and bonds.”

The other often overlooked option is the shared care option.  “This is an incredible benefit not offered by every insurance company but for a couple, I think it’s the best-kept secret today,” Slome declares.  “With the off-the-shelf approach each spouse is capped by the value of their own policy.  With the shared care option, if one spouse exhausts their benefits, they can tap or access the benefits available in the other spouse’s benefit pool.  That’s an incredible planning tool for couples.”

Couples Request Long-Term Care Insurance Costs from Specialists

Slome notes that each insurance company sets their own pricing and specific policy features.  “This is a case where you really benefit from working with a knowledgeable specialist, someone appointed with multiple long-term care insurance companies,” he advises.  To connect with a specialist, call the Association offices at 818-597-3227 or request no-cost and no-obligation by completing the online request a quote form available at www.aaltci.org.

The post Saving Strategies for Couples – Age 60 – 2019 Price Index appeared first on American Association for Long Term Care Insurance.

Jesse Slome, long term care insurance expert

For many consumers, the magic price point for starting the conversation about long-term care insurance is $100 according to the director of the American Association for Long-Term Care Insurance (AALTCI).

“Every discretionary purchase has a magic price point.  Get close to it and you’ll be rewarded.  Cross it, and few people will be interested and buy,” explains Jesse Slome, director of AALTCI, the national long-term care insurance association.   ”It wasn’t a coincidence that iTunes started charging 99-cents, below the magic one dollar price point.  If they had started even at $1.29 their initial launch and sales would have been very different.”

The long-term care insurance expert was sharing marketing ideas with designated long-term care insurance specialists.  “There is definitely a magic price point when speaking to consumers about the importance of long-term care planning and the role that insurance plays,” Slome advocated.  “The magic price point is $100-per-month and many insurance agents make the mistake of starting the discussion higher and then trying to down-sell if they sense price resistance.”

Slome advised the insurance agents to recognize the importance of magic price points and to start the conversation with that in mind.  “It’s definitely possible to achieve that and still offer some long-term care insurance protection that is suitable for many,” Slome points out.

According to the just published long-term care insurance cost analysis, a couple both age 55 could purchase a benefit pool of over $300,000 at age 85, the age when need for care is most likely.  “The monthly cost would be $100-per-person,” Slome notes.  “Of course, if the couple wanted more coverage you can always increase their benefits but starting high and trying to peel back is not a viable way to offer this product I believe,” he added.

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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