Thursday, January 20, 2022

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The American Affiliation for Lengthy-Time period Care Insurance coverage (AALTCI) has come out with a brand new long-term care (LTC) advantages product value comparability evaluation.

AALTCI checked out how a lot a shopper may pay to get long-term care advantages by way of a stand-alone long-term care insurance coverage (LTCI) coverage, versus how a lot the identical shopper may pay to get the identical quantity of advantages by way of a life insurance coverage coverage that gives LTC advantages.


AALTCI thought of a number of totally different protection buying situations.

In a single state of affairs, for instance, AALTCI assumes that the patron is a single, 55-year-old feminine. She is looking for protection that would offer a $505,000 pool of advantages at age 90, with 3% annual protection progress.

That lady would pay $2,750 per yr for a stand-alone LTCI coverage offering that quantity of protection, based on AALTCI.

One life insurer would cost the girl $5,500 per yr for a life-LTC hybrid offering a $505,000 pool of advantages at age 90.

A second life insurer would cost the girl $7,010 per yr for that form of pool of life-LTC hybrid LTC advantages, based on AALTCI.

If the girl goes with the life-LTC hybrid insurance policies, she is going to get a most demise advantage of $130,000 together with the LTC advantages, based on AALTCI.

In associated information, AALTCI has additionally launched new LTCI declare information, based mostly on an evaluation of knowledge from the Connecticut Partnership for Lengthy-Time period Care.

The Westlake Village, California-based group discovered that:

  • The typical time between the acquisition of LTCI protection and the time the primary declare arrives is 162 months, or about 13.5 years. That’s up from a mean of 12.eight years in 2017.
  • The entire quantity paid to Connecticut partnership program claimants has ranged from $19 to $1.5 million. That compares with a spread of $19 to $1.6 million in 2017.
  • The typical quantity paid to Connecticut claimants is $127,628, up from a mean of $122,436 in 2017.

— Learn AALTCI Sees Huge Variations in 2019 LTCI Premiums, on ThinkAdvisor.

— Join with ThinkAdvisor Life/Well being on LinkedIn and Twitter.


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