Asset-based long term care (LTC) arrangements sold well in 2010, according to the American Association for Long-Term Care Insurance (AALTCI).
AALTCI, Westlake Village, Calif., has included asset-based LTC market statistics in its 2011 Long-Term Care Insurance Sourcebook.
An asset-based LTC arrangement uses life insurance that comes with LTC benefits or, in some cases, an annuity that comes with LTC benefits, to meet a consumer’s LTC planning needs.
New premium revenue from asset-based LTC sales increased 79% between 2009 and 2010, and the number of covered lives increased 83%, AALTCI says.
About two-thirds of the new policies have an initial single-premium face amount of $100,000 dollars or greater, AALTCI says.
About half of the asset-based arrangements were purchased by individuals ages 65 and older, and about one-third by individuals ages 55 to 64.
- Michael K. Stanley