The average time from when an individual purchases long-term care insurance until they start a claim is just over 14 years according to the American Association for Long-Term Care Insurance (AALTCI).

"Long-term care insurance pricing presumes you pay a smaller amount for a period of time and then are eligible for a benefit that can far exceed what you've paid in," explains Jesse Slome, director of the long-term care insurance organization.

Slome was sharing data from a recently released study examining just over 5,000 long-term care insurance claimants through December 2020.  The data was shared as part of the organization's ongoing communication with leading long-term care insurance marketing specialists.

"One can assume that policies purchased a decade or longer ago cost an average of $1,500 to $1,800 a year," Slome projects.    "The mean claim paid to the 5,000 claimants studied is $137,000 and the largest claim was over $1.7 million.  For these individuals, their insurance benefit definitely exceeded what they would have paid in premiums."

Slome shared with the group of long-term care insurance sales professionals that insurance should never be confused with investment products.  "I think of long-term care insurance as the 'reverse lottery'.  With the lottery many people pay money for a chance to win but very few actually ever do.  With long-term care insurance, many people pay money and a surprisingly high number get something back in the way of benefits."

A prior report shared by AALTCI noted that as many as 50 percent of those with policies will actually utilize the coverage.  To see long-term care insurance statistics visit the Association's website or go to www.aaltci.org/LTCFacts-2021.

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions.   To obtain long-term care insurance costs call the organization at 818-597-3227 or visit their website.