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Nursing-Home-Only Policies Lose Luster

By Staff Writer

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Unum Group Corp. says it sold no nursing-home-only long term care insurance policies in 2007.

Nursing-home-only policies once were the most popular LTC policies, and their decline reflects a dramatic shift toward policies that include home care coverage, says Unum, Chattanooga, Tenn.

Unum also reports in a review of the long term care insurance market that 93% of the company’s total in-force policies now cover some type of home care.

About 70% of its group customers using LTC benefits are applying them to care that occurs in the home.

Unum provided group LTC coverage for 653,000 in 2007, or about 76% of all U.S. residents with group LTC coverage.

Other details from the Unum report:

- Women represent 52% of Unum’s LTC insurance purchasers.

- The average age of an Unum group LTC purchaser is 43.5 years.

- The number of LTC insurance cases sold increased 37% at Unum between 2005 and 2007.

- 90% of new group LTC cases were at least partly employer-paid.