LTC Payouts: $3.5 Billion in '07

Jesse Slome, executive director of AALTCI, says 400,000 new policies were issued last year alone. “As more individuals become aware of, and understand the importance of, planning for long-term care needs, the number of individuals and families deriving benefit from this coverage will only increase,” he says.

While most people associate long-term care insurance with nursing home care, Slome says, “quite the opposite is true.” According to the study, 43% of claims paid in 2007 were attributed to home care. Nearly one-third (32.9%) of claims were for assisted living and 24.1% covered nursing home care. Over 97% of long-term care insurance policies sold provide some form of home care benefit; in 2000, 86% did so, while in 1995 only 67% did.