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Largest Long-Term Care Insurance Claim Being Paid Exceeds $2 Million
From:
American Association for Long-Term Care Insurance American Association for Long-Term Care Insurance
Los Angeles , CA
Thursday, April 26, 2018


Largest long-term care insurance claims at www.aaltci.org/LTCFacts
 

A single long-term care insurance policyholder claim has exceeded two million dollars, the first time this threshold has been reported according to an industry analysis of claims conducted by the American Association for Long-Term Care Insurance (AALTCI).

"One insurance company has paid out $2.6 million to an individual who has been on claim for over 20 years," shares Jesse Slome, director of long-term care insurance organization.  The Association released findings of its study of 2017 claimant data.  Part of the study looked at the largest claims that were still being paid as of December 31, 2017.

"The last time we gathered information for the largest open claims was 2012," Slome noted.  "At that time, the industry's largest open claim totaled $1.8 million."

According to the AALTCI report, the female claimant purchased the policy some 13 years and nine months prior to the commencement of receiving benefits.  "The initial premium paid was $2,600-per-year, so around $36,000 in total cost has secured her and her family an enormous benefit," Slome adds.   "People mistakenly worry that they'll buy long-term care insurance and never receive benefits," Slome admits.   "Despite getting over $2 million in benefits for their purchase, I doubt anyone would want to trade places with someone needing care for over 20 years."

The largest male claimant has been paid nearly $1.6 million by a different insurer reporting data. This claim has been paid for nearly 10 years (9 years, 10 months), according to Slome.  The policyholder purchased the policy six years and six months prior to starting to receive benefits.  The policy cost $4,475 a year initially according to the AALTCI study.

"This is an important story to tell consumers," Slome a leading advocate for long-term care planning added.   "Unfortunately long-term care insurance is often thought of in terms associated with investment vehicles resulting in consumers who worry they may buy something they won't ever need or use," Slome admits.  "Long-term care insurance is what I call the 'reverse lottery' with many smaller claims and a few whoppers.  But, honestly, unlike the lottery, I wouldn't consider these super large claimants winners -- though their families are certainly glad they have this coverage."

The Association posted data on the largest claims paid by five insurers to both male and female policyholders on the Association's website.  To see the data go to www.aaltci.org/LTCFacts.

Individuals who want to learn more about long-term care insurance costs and planning options can call the American Association for Long-Term Care Insurance at 818-597-3227 or visit the organization's website at www.aaltci.org to find and connect with local LTC insurance professionals.

The American Association for Long-Term Care Insurance and the American Association for Medicare Supplement Insurance advocate for the importance of planning and support insurance professionals nationwide.  Jesse Slome, founder and executive director of the organizations, is a leading consumer advocate and author of numerous consumer and professional guides focused on retirement and insurance planning that have been published by governmental agencies and private organizations.

 
Jesse Slome
Executive Director
American Association for Long-Term Care Insurance
Westlake Village, CA
818-597-3227