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Long-Term Care Insurance Policy Usage Projections Reported By AALTCI
From:
American Association for Long-Term Care Insurance American Association for Long-Term Care Insurance
Los Angeles, CA
Wednesday, February 17, 2021


Long term care insurance policy usage
 

One out of two individuals who purchase long-term care insurance at age 65 will actually utilize their coverage according to data released by the American Association for Long-Term Care Insurance (AALTCI).

"It's a 50-50 probability that someone getting long-term care insurance at age 65 will use their coverage and that's a significant piece of information few consumers understand," explains Jesse Slome, director of the long-term care insurance organization.

The organization worked with leading industry actuaries to review data.  "We specifically looked at risks based on coverage that had a zero-day elimination period," Slome adds.  "Today, many policies have provisions or options that include access to immediate benefits for home care needs.  And, since the vast majority of long-term care insurance benefits today pay for care at home, this made the most sense."

The Association director acknowledged the likelihood of usage was less when a 90-day Elimination Period (EP) was used to factor risk.  "Many people choose a 90-day EP specific to when benefits for skilled nursing home care would apply and that makes sense because Medicare covers some of that risk," Slome notes.

"Does having some long-term care insurance make financial sense?" Slome queries.  "We insure our homes even though we know the risk of a house fire is far less than 50-50.  The risk of needing care as we age is significantly high, and thus the answer is yes, having some protection in place makes prudent financial sense."

The 50-50 usage projection assumes the individual purchases long-term care insurance at age 65 and maintains the policy until either they need benefits or die.   The Association recently posted their 2021 long-term care insurance price index and other statistics and data on it's website.

Headquartered in Los Angeles, 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. Request long-term care insurance costs by calling the organization at 818-597-3227 or visit their website at www.aaltci.org.

Jesse Slome is director of the American Association for Long-Term Care Insurance.  He also directs the American Association for Critical Illness Insurance and the American Association for Medicare Supplement Insurance agents.

News Media Interview Contact
Name: Jesse Slome
Title: Executive Director
Group: American Association for Long-Term Care Insurance
Dateline: Westlake Village, CA United States
Direct Phone: 818-597-3227
Main Phone: 818-597-3227
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