Long-Term Care Insurance Facts - Data - Statistics - 2019 Report
The following facts are provided by the American Association for Long-Term Care Insurance based on data researched or gathered by the organization. Information may be used with proper citation (Data from the American Association for Long-Term Care Insurance, www.aaltci.org).
- Long-Term Care Insurance Policy Costs
- Policy Purchase Data-2018
- NEW BUYERS - Ages When LTC Insurance Policies Are Purchased
- NEW BUYERS - Percentage of 2019 Applicants DECLINED By
- NEW BUYERS - Benefit Periods for New LTC Insurance Policies
- Long-Term Care Insurance Claims 2018 Data
- LTC Insurance Industry Claims Paid - 2015 - 2018
- Largest Long-Term Care Insurance Claims Paid (2018)
- Long-Term Care Insurance Claims Paid - Male / Female (2018)
- AGES When New Long-Term Care Insurance Claims BEGIN (2018)
- WHERE Do New Long-Term Care Insurance Claims BEGIN? (2018)
- WHERE Do Long-Term Care Insurance Claims END? (2018)
- A Look At Long-Term Care Insurance Claims (2019)
- LTC Claims - How Long From Purchase To Claim? (2019)
- Reasons Long-Term Care Insurance Claims End (2018)
- Long-Term Care Insurance Tax Deductible Limits - 2019
- WHEN Do Americans Need Long-Term Care Services & Supports? By Age. (2018)
- WHEN? Percentage Of Age Groups Who Need Long-Term Care Services. (2018)
Long-Term Care Insurance Policy Costs - 2019
| Annual Premium - Average of Leading LTC Insurance Companies | ||
|---|---|---|
| Single Male, Age 55 (Select Health) | $ 2,050 | |
| Single Female, Age 55 | $ 2,700 | |
| Couple, Both Age 55 (cost shown is COMBINED for the couple) | $ 3,050 | |
| Single Male, Age 60 (Pref Health) | $ 1,925 |
| Single Female, Age 60 | $ 3,050 |
| Couple, Both Age 60 (cost shown is COMBINED for the couple) | $ 3,400 |
350,000 Americans Buy Long-Term Care Protection in 2018
Traditional policies are stand-alone (generally providing the most leverage for premium dollars). Linked-benefit (also called Combo or Hybrid) include a broad variety of Life+LTC and Annuity+LTC plans.
Percentage of 2019 Applicants DECLINED By The Insurance Company
Individuals must 'health qualify' to be accepted by an insurance company for long-term care insurance. The following are the percentage of applicants (in 2019) who took the time to complete an application and still were delclined (traditional LTCi policy). It is important to start investigating LTC insurance at ages when you can health-qualify for this important protection.
New LTCi Policies: Ages of Buyers of New LTC Insurance
Most buyers are between ages 50 and 69. After 69 it becomes harder to health qualify for new coverage. Not impossible but it really is important then to work with a knowledgeable LTC insurance specialist.
New LTCi Policies: What 'Benefit Periods' Do People Select
Most buyers today select coverage using a 2, 3 or 4 year benefit period. Remember, this does NOT mean benefits must end afterthat time. It is just the factor used to calculate your total pool of benefits.
Long-Term Care Insurance Industry Claims Paid 2015 - 2018
Total of 'traditional' long-term care industry claims paid during the respective calendar years. Number of claimants is based on approximate number of claimants on 12/31 of each calendar year.
Largest Long-Term Care Insurance Claims Paid - Thru December 31, 2018
| Largest Claims Paid - Company 1 | ||
|---|---|---|
| MALE | FEMALE | |
| Total Value of Claim Paid To Date | $ 2,276,381 | $ 2,329,333 |
| Number of Years This Claim Has Been Paid | 14 years - 2 months | 16 years - 6 months |
| Largest Claims Paid - Company 2 | ||
|---|---|---|
| MALE | FEMALE | |
| Total Value of Claim Paid To Date | $ 2,205,800 | $ 2,636,417 |
| Number of Years This Claim Has Been Paid | 19 years - 3 months | 15 years - 4 months |
| Largest Claims Paid - Company 3 | ||
|---|---|---|
| MALE | FEMALE | |
| Total Value of Claim Paid To Date | $ 2,091,083 | $ 1,727,594 |
| Number of Years This Claim Has Been Paid | 16 years - 2 months | 9 years - 10 months |
| Largest Claims Paid - Company 4 | ||
|---|---|---|
| MALE | FEMALE | |
| Total Value of Claim Paid To Date | $ 1,700,000 | $ 2,000,000 |
| Number of Years This Claim Has Been Paid | 15 years - 8 months | 14 years - 6 months |
| Largest Claims Paid - Company 5 | ||
|---|---|---|
| MALE | FEMALE | |
| Total Value of Claim Paid To Date | $ 1,461,256 | $ 2,012,385 |
| Number of Years This Claim Has Been Paid | 14 years - 3 months | 11 years - 7 months |
| Largest Claims Paid - Company 6 | ||
|---|---|---|
| MALE | FEMALE | |
| Total Value of Claim Paid To Date | $ 1,413,934 | $ 1,499,601 |
| Number of Years This Claim Has Been Paid | 15 years - 4 months | 15 years - 6 months |
| Largest Claims Paid - Company 7 | ||
|---|---|---|
| MALE | FEMALE | |
| Total Value of Claim Paid To Date | $ 1,179,502 | $ 1,316,417 |
| Number of Years This Claim Has Been Paid | 13 years - 2 months | 18 years - 1 month |
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Long-Term Care Insurance Industry Claims Data - Men - Women - 2018
Women account for nearly two-thirds of all long-term care insurance claims paid in 2018.
Ages When New Long-Term Care Insurance Claims Begin - 2018
Most new claims start after age 85. Percentage breakdown of ages when new LTCi claims were started in 2018.
Where New Long-Term Care Insurance Claims BEGIN - 2018
Most new claims start with care in the home. Percentage breakdown of where new LTCi claims paid for initial care in 2018.
Where New Long-Term Care Insurance Claims END - 2018
Most new claims end where they began. There is a small transition from one setting (such as home care) to ALF or nursing home.
Why Long-Term Care Insurance Claims End - 2018
Most claims end because of the death of the policyholder. Percentage breakdown of why LTCi claims ended.
A Look At Long-Term Care Insurance Claims - 2019
From a report published by the Connecticut Partnership, mean age of claimants is 79.
Services Used By Long-Term Care Insurance Claimants - 2019
13.4 years from purchase of policy to beginning of claim.
Decline Rates For LTC Insurance Applicants (2017)
Source: American Association for Long-Term Care Insurance study of data from leading traditional LTC insurers. April 2018.
Long-Term Care Insurance Tax Deductible Limits - 2019
AS YOU AGE … YOUR TAX DEDUCTIBLE LIMIT INCREASES
Tax-qualified LTCi premiums are considered a medical expense. For an individual who itemizes tax deductions, medical expenses are deductible to the extent that they exceed current amount required to meet the individual's Adjusted Gross Income (AGI). The amount of the LTCi premium treated as a medical expense is limited to the eligible LTCi premiums, as defined by Internal Revenue Code 213(d), based on the age of the insured individual. That portion of the LTCi premium that exceeds the eligible LTCi premium is not included as a medical expense.
Individual taxpayers can treat premiums paid for tax-qualified long-term care insurance for themselves, their spouse or any tax dependents (such as parents) as a personal medical expense.
The Association does not provide tax advice. Speak with your accountant for specific rules and limits that apply.
2019 Long Term Care Insurance Federal Tax Deductible Limits
| Taxpayer's Age At End of Tax Year - Deductible Limit | ||
|---|---|---|
| 40 or less | $ 420 | |
| More than 40 but not more than 50 | $ 790 | |
| More than 50 but not more than 60 | $1,580 | |
| More than 60 but not more than 70 | $4,220 | |
| More than 70 | $5,270 | |
Source: IRS Revenue Procedure: 2018-57
Back to TopWhen Do Americans Need Long-Term Care Services & Support (2018)
Source: American Association for Long-Term Care Insurance report of data from leading sources including AARP. November 2019.
Percentage of Ages When Americans Need Long-Term Care Services (2018)
Source: American Association for Long-Term Care Insurance report of data from leading sources including AARP. November 2019.
REPORTERS - EDITORS & BLOGGERS
If you would like additional information please call or email Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance.
Phone: 818-597-3227
Click Here To Email Jesse Slome