A year of stability for traditional long-term care insurance is hoped for according to the annual forecast from the director of the American Association for Long-Term Care Insurance.
"The past year has certainly been tumultuous for many of those involved with traditional long-term care insurance but I believe barring some major event 2017 will be a calmer year," predicts Jesse Slome, director of the American Association for Long-Term Care Insurance. Slome issued the annual year-end report and forecast for the coming year.
"My assessment for the coming year remains positively neutral," Slome shared with leading marketers of long-term care insurance. "The departure of several traditional long-term care insurers was disappointing but predictable. While the future for one of the major remaining insurers remains uncertain, I believe we'll see some stability and that rising interest rates will be beneficial for insurers."
In terms of sales, Slome predicted continued significant growth in sales of linked-benefit products. "These now are the dominant solution being sold nationally and I see now reason why the trend won't continue," Slome shared. The long-term care insurance expert noted that little has been done to address consumer concerns regarding traditional long-term care insurance as a suitable product. "It's certainly a shame that the many benefits have not been addressed but one must accept and base their plans on reality," he suggested to the group.
Slome noted that sales of traditional long-term care insurance policies had reached a high of over 750,000 policies in 2002. "For 2015, the number of sales was about 105,000 and it will be interesting to see the final tally for 2016," Slome added. "Yet, I am positive that as middle-income Americans realize the new administration seeks to make changes to government programs, self reliance and planning will be the path for many more."
Founded in 1998, the American Association for Long-Term Care Insurance was established to create consumer awareness regarding the importance of long-term care planning and to support insurance professionals who market the range of long-term care insurance solutions. For more information or to get local long-term care insurance costs go to www.aaltci.org.
The American Association for Long Term Care Insurance (www.aaltci.org) is the national trade organization focused on educating individuals about the importance of planning for the risk of long term care. The American Association for Medicare Supplement Insurance (www.medicaresupp.org( focuses on Medigap industry issues and helps link consumers with Medicare Supplement agents. The National Advisory Center for Short Term Care was established in 2015 to build awareness for the important role short term care insurance plays in protecting seniors.