LTCI rates up slightly

A long term care insurance policy that provides benefits for three years or longer, offering approximately $115,000 in current benefits and a compound inflation option that increases benefits by 5 percent each year. What would such a policy cost? The answer depends on one’s age and health, but the American Association for Long-Term Care Insurance wants everyone to have an idea of that answer. AALTCI’s annual Long Term Care Insurance Price Index found a 4 percent coverage price increase from 2007.

The average price for a comprehensive long term policy (100 percent home-care benefit plus skilled care coverage) with 90-day elimination period with compound inflation protection option (benefit increases 5 percent compounded annually) is as follows for various ages: $100 maximum daily benefit, 3-year benefit period:

• Age 55, qualifies for preferred health and spousal discounts — $709/year
• Age 55, single, preferred health discount — $1,095/year
• Age 65, qualifies for spousal discounts, standard health — $1,342/year
• Age 65, single, standard health — $1,999/year

$150 maximum daily benefit, 3-year benefit period:

• Age 55, qualifies for preferred health and spousal discounts — $1,064/year
• Age 55, single, preferred health discount — $1,578/year
• Age 65, qualifies for spousal discounts, standard health — $2,013/year
• Age 65, single, standard health — $2,998/year

Jesse Slome, AALTCI’s executive director, encourages consumers to purchase LTC coverage as early as possible to avoid paying more than they need to.