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New LTCI sales firm up

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The drop in new U.S. stand-alone long-term care insurance sales might be starting to bottom out.

LIMRA says premium revenue from sales of new, stand-alone individual long-term care insurance policies amounted to $117 million in the first half of the year.

That was down 8 percent from the total for the first half of 2015, but the LIMRA first-half long-term care insurance sales revenue total sank 17 percent to 30 percent each year from 2013 through 2015.

In 2012, first half sales revenue was up 5 percent.

Related: Long-term care insurance market gets first new issuer in 10 years

Similarly, the number of people covered by new, stand-alone, individual long-term care insurance policies fell 4 percent between the first half of 2015 and the first half of this year, to 48,000.

But the number of new individual long-term care insurance lives fell from 20 percent to 26 percent each year from 2013 through 2015.

The 4 percent drop for the first half of this year is the best new-LTCI-lives-covered figure LIMRA has reported since 2012, when the number of new lives was the same as in 2011.

LIMRA found that the people who got covered in the first half will pay an average of $2,431 in first-year premiums, or about $203 per month.

The average individual long-term care insurance premium was 4 percent lower than in the first half of 2015, according to LIMRA.

LIMRA based the new long-term care insurance sales figures on results from a survey of 13 U.S. long-term care insurance issuers.


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