People mistakenly associate it exclusively with skilled nursing home care
The vast majority of long-term care insurance claims begin in the home, according to an industry analysis of claims conducted by the American Association for Long-Term Care Insurance (AALTCI).
“People mistakenly associate long-term care insurance exclusively with skilled nursing home care,” shares Jesse Slome, director of long-term care insurance organization. The Association released findings of its study of 2017 claimant data.
According to AALTCI, 52.1 percent of all new long-term care insurance claims in 2017 began in the home setting. “Nearly one in five claims (19.7 percent) started in an assisted living facility and only 28.2 percent commenced in a skilled nursing home,” Slome reports. The organization analyzed data from six leading long-term care insurance companies.
$9.2 Billion and Rising…
The nation’s long-term care insurance companies paid $9.2 billion in claim benefits in 2017 to some 295,000 individuals according to AALTCI. ”Both the dollars paid and the number of individuals receiving benefits continue to grow as more Americans benefit from having this important protection,” Slome added.
Women accounted for over two thirds (68 percent) of newly opened claims in 2017. “Long-term care planning is especially important for women because they are far more likely to need care,” Slome notes. The study found that 19 percent of new claims by women started in a nursing home setting while 34 percent began at home.
“Individuals want to remain in their own home when care is needed and long-term care insurance enables them to get the care they need in the setting they prefer,” Slome explained.
Consumers 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.
Relevant Data on Long-Term Care Insurance Claims
Highlights of a report reveal important statistics regarding long-term care insurance that can help consumers starting to plan suggests the director of the American Association for Long-Term Care Insurance (AALTCI), a national trade organization.
“One of the best ongoing studies of long-term care insurance buyers and claimants is prepared by the Connecticut Partnership for Long-Term Care,” Slome said. ”Connecticut was the first state to adopt the LTC Partnership program and has been reporting quarterly since its inception in the early 1990s,” he notes.
Partnership programs are a joint effort between State governments and private insurers to create an option designed to help individuals meet future long-term care needs without depleting all assets to pay for care.
“One can gain great insight by examining the latest Connecticut study,” Slome shared with insurance professionals during an industry update call. “The information is relevant to those looking into ways to protect against the risk of a costly LTC claim.” The latest report published November 7, 2017 reports on data through June 30, 2017.
Nearly two-thirds (60%) of individuals who filed claims are women, according to the Connecticut report. “Half of the claimants are married, 39 percent were not married and the remainder were of unknown status,” Slome noted.
Statistics can be misleading
The average age at the time of policy purchase for someone on claim was 66. “The mean age at the time of claim was 79,” Slome says. The amount of claim benefits paid to date ranged from a low of $19 to a claim that has exceeded $1.5 million. “The mean claim benefit paid is $115,617 which I am certain is far more than any of the policyholders paid in premium,” Slome shared with the group. “You can bet the people who had claims were very pleased they had purchased this insurance protection, a story that needs telling.”
“Statistical information is always helpful but it can be misleading,” Slome cautioned the group. “When I talk to consumers, I share that the likelihood of needing long-term care is either zero percent or 100 percent. The real question is, if you need this care, how will it impact your family and loved ones, your retirement savings and legacy plans. That’s why some long-term care insurance is always better than none at all, and where available and priced affordably, a Partnership plan is an excellent option.”
To learn more about long-term care insurance planning options 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 local LTC insurance professionals.
