AALTCI: LTCI buyers are getting less inflation protection

The percentage who bought policies with protection against 5 percent in annual long-term care (LTC) cost increases fell to 14.5 percent, from 51 percent in 2012.

In 2014, about half of the buyers bought policies with protection against an LTC inflation rate of 3 percent.

See also: AALTCI posts LTCI claim data

AALTCI is publishing the underlying data used in the analysis and other LTCI market data in the 2015 Long-Term Care Sourcebook.

Insurers have noted that, in recent years, LTC costs have been rising faster than the general inflation rate but less than 5 percent per year.

Jesse Slome, AALTCI executive director, said in a statement that he believes buying coverage with a lower level of inflation-protection can be a good way to hold the cost of coverage. ”If you can afford more coverage, that’s certainly a viable choice,” Slome said. “But many people today plan to have their insurance pay part of their costs, with the rest paid from their Social Security benefits or their retirement savings.”