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New study tracks usage of long term care insurance

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The American Association for Long-Term Care Insurance has come out with a consumer guide, which offers new data on the duration of LTCI claims as well as other findings related to LTCI. The data come from a study conducted for the group by Milliman, Inc.

As AALTCI executive director Jesse Slome explained, LTCI prospects like to learn the real risk of needing an insurance policy before they buy. “We no longer have to use out-of-date government data that includes all segments of the populace and is not specifically relevant to the long term care insurance buyer,” he said.

The new guide includes helpful charts which report such things as the industry’s longest-running claims still active, the percentage of claims being paid to single and married men and women and the ages at which beneficiaries first make claims.

The study also revealed how selected insurance protection related to actual claims. “More consumers are purchasing limited-duration policies as a way to keep the cost of long term care insurance affordable,” said Slome. “In 2009, almost one-third of individual buyers purchased a three-year benefit period.” Such policies cost between 42 and 54 percent less than an unlimited-term policy.


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