Long-Term Care Insurance Policy Costs - 2021 - PURCHASE AGE 55

Rates shown below reflect "Select" health which is more costly than "Preferred" health. Rates shown for prior years generally reflect "Preferred" health especially for age 55. WHY THE CHANGE? Because consumers who saw earlier reports called after they were quoted higher rates. We understood and agreed. If you are in Preferred health, you can benefit from lower rates - a reason to comparison shop.

PERCENTAGE DIFFERENCE BETWEEN LOWEST & HIGHEST PRICES - with the 3% Option
Male (71%) ------- Female (60%) ------- Couple (52%)

Long-Term Care Insurance Policy Costs - 2021 - PURCHASE AGE 60

Long-Term Care Insurance Policy Costs - 2021 - PURCHASE AGE 65

PERCENTAGE DIFFERENCE BETWEEN LOWEST & HIGHEST PRICES - with the 3% Option
Male (77%) ------- Female (84%) ------- Couple (46%)

Compare Traditional Long-Term Care Insurance to Linked Benefit
- NO Inflation Growth -

IMPORTANT: Linked-benefit products today vary significantly and it is virtually impossible to provide an "apples-to-apples" comparison. The examples below are as close as we can come; designed to give consumers a good starting point. It is important to work with a knowledgeable long-term care insurance who can educate you and compare the various options.

Rates above include NO INFLATION GROWTH OPTION so benefit pool WILL NOT INCREASE. Prices for State of AZ. Prices can vary by State. Calculated: January 2021

Compare Traditional Long-Term Care Insurance to Linked Benefit
- WITH 3% Annual Inflation Growth -

IMPORTANT: Linked-benefit products today vary significantly and it is virtually impossible to provide an "apples-to-apples" comparison. The examples below are as close as we can come; designed to give consumers a good starting point. It is important to work with a knowledgeable long-term care insurance who can educate you and compare the various options.

Data from AALTCI (2021) - A comparison of equal coverage. If you wait (say from age 55 to 65) same initial coverage costs 49.9% more. NOT ONLY WILL YOU PAY MORE but you forfeit the increase in potential available benefits (thanks to having an annual growth factor. Plus YOU RISK BEING DECLINED for health reasons or paying more. Finally, YOU MAY LOSE THE COUPLE'S DISCOUNT due to spouse's death, divorce or denial of coverage.

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

A comparison of equal coverage. Top row with no growth of benefits. Bottom row with 3% compound inflation option.

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

A comparison of equal coverage. Top row with no growth of benefits. Bottom row with 3% compound inflation option.

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

A study by Milliman Actuarial ("Is Your Spouse Contagious?") examined LTC insurance claims of married couples. The need for care for the second spouse after the first spouse commences a claim is consistently higher that they would have expected using their prior data.

More from the study by Milliman Actuarial ("Is Your Spouse Contagious?"). In the first year following the death of a spouse, a policyholder is about three times more likely to incur an LTC claim than otherwise would have been expected in the absence of spousal mortality information.

Costs of care vary and we strongly recommend consumers speak with a local professional who can best share costs for your particular area.
WHY do we post MONTHLY costs? Because most LTC policies (especially linked benefit) cite a maximum monthly benefit payout on their illustrations.
WHY do we post AVERAGES when rates can vary significantly? Because media like reporting 'averages' and this addresses their needs.

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

Insurers pay benefits to insured clients. Traditional LTC insurance data.

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

Lifetime chance that someone who buys a traditional long-term care insurance policy at age 65 will use their policy before they die. Assumes they pay premiums until accessing benefits or die.

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

The average time from when individual purchased their long-term care insurance policy until when they became eligible for benefits.

A look at just over 5,000 individual policyholders who have received benefits from their long-term care insurance policy. The largest long-term care insurance policy claim benefit paid has exceeded $1.7 million.

Data shared by LTCG and covers home care claims (pre-pandemic data). Note that when a policyholder recovers and goes 'off claim' they also resume paying insurance premiums.

Most nursing home claims (and these are for Medicaid recipients) last one or two years. Why do we emphasize Medicaid recipients? Because Medicaid often favors institutional care versus care at home.

Interesting data that looks at what can be expected when someone 65 has some need for care. Remember that NOT all individuals will need long-term care.

Each year, over 95 percent of individuals with traditional policies keep them in force. Five (5) percent drop coverage every year BUT this includes those who DIE. Even when facing rate increases, policyholders do NOT drop their coverage. Most accept other options offered by the insurance company. (January 2021)

When citing data, please credit: "American Association for Long-Term Care Insurance, 2021, www.aaltci.org"

Some 49,000 individuals purchased new (traditional or health-based) long-term care insurance in 2020. While a significant decline from prior years, note the growth of linked-benefit products purchased (see chart below).

When citing data, please credit: "American Association for Long-Term Care Insurance, June 2021, www.aaltci.org"

Sales of new (traditional or health-based) long-term care insurance have ranged from a high of over 700,000 to the current level .

When citing data, please credit: "American Association for Long-Term Care Insurance, June 2021, www.aaltci.org"

Reprinted with permission from AM Best