American Association for Long-Term Care Insurance

A look at some nearly 4,000 long-term care insurance policyholders receiving claim benefits reveals some interesting insights according the director of the American Association for Long-Term Care Insurance.

“All the media focus surrounding long-term care insurance is on whether it makes sense to buy this coverage but little attention deals with how real policyholders actually benefit from the protection,” explains Jesse Slome, director of the national long-term care insurance association.  “Data on long-term care insurance claims is hard to come by but is extremely revealing.”

Slome was speaking to leading insurance professionals sharing some of the latest data from the just released statistics shared by the Connecticut Partnership for Long-Term Care.  “To the best of my knowledge, Connecticut is the only state still sharing data which is a real shame,” Slome pointed out.

According to the report there were 40,833 Partnership qualified long-term care insurance policies in force as of June 30, 2018.   “To date, the number of policyholders who have qualified to receive benefit payments as a result of having LTC insurance was 3,829,” Slome shared with the group.  “Some 1,044 policyholders received services during the latest quarter which makes the data current and relevant.”

The ages for policyholders when their claim first began ranged from 31 to 99 with the mean age for a claimant reported at 79.  “We know the vast majority of long-term care insurance claims begin when the policyholder is age 80 or older,” Slome notes based on Association studies.  The average age at time of policy purchase reported by the Connecticut data was 66.  The average time that elapsed between the purchase date and eligibility date for claim benefits was 154 months or 12.8 years.

Individuals with long-term care insurance policies included in the study received aggregate benefits that ranged from a low of $19 to a high of $1,578,605.  “The mean benefit paid was $122,436 which would be far more that the premiums paid for this coverage,” Slome adds.

“The risk of needing long-term care as we age is real and far too few Americans have an understanding of their options,” Slome concluded.  “Planning for something that likely won’t be needed for 10, 15 or 20 years is difficult and easy to put off but that is a huge mistake many people make.”  Long-term care insurance must typically be purchased prior to age 65 when it is reasonable in cost and individuals are more likely to meet the health qualifications imposed by insurers at the time of application.

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 agents or cost comparisons should visit the Association’s website at www.aaltci.org or can call the organization’s national headquarters at 818-597-3227.

Tags: aging, American Association for Long-Term Care Insurance, long-term care insurance, Medicare, research, seniors, statistics, study

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