As the need for more people to cover themselves for long term care increases, it appears more people are getting the message, and they are getting it at a younger age.
The American Association for Long-Term Care Insurance says two things are driving a more positive future for LTCI: the turnaround in sales and that more people are buying the coverage in their 50s. To increase awareness even more, AALTCI publishes a price index meant to give advisors and their clients an idea of what coverage can cost and what it is worth.
“Consumers mistakenly believe long term care insurance protection is costly and nothing is further from the truth,” said Jesse Slome, the executive director of AALTCI. “There are discounts available today to those in good health, for nonsmokers, married couples or even domestic partners. You can cut costs paying annually vs. monthly, roughly 9 percent, and by another 8 percent simply by being accepted for coverage before your next birthday.”
According to AALTCI, the following are the average prices for a comprehensive LTCI policy with 100 percent home care benefit plus skilled care coverage, a 90-day elimination period with compound inflation protection option (benefit increases 5 percent compounded annually), and a 3-year benefit period:
Age 55, $100 maximum daily benefit: $665/year (individual qualifies for preferred health and spousal/partner discounts)
- Age 55, $100 max DB: $1,075/year (individual qualifies for preferred health)
- Age 55, $150 max DB: $1,027/year (individual qualifies for preferred health and spousal discounts)
- Age 55, $150 max DB: $1,524/year (individual qualifies for preferred health)
- Age 65, $100 max DB: $1,292/year (individual qualifies for spousal/partner discounts, standard health)
- Age 65, $100 max DB: $1,923/year (individual is single, standard health)
- Age 65, $150 max DB: $1,939/year (individual qualifies for spousal discounts, standard health)
- Age 65, $150 max DB: $2,885/year (individual is single, standard health)
For more information, visit the Association’s Web site at www.aaltci.org.