Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Long-Term Care Planning

LTC Product Sales Rise 12%: LIMRA

Your article was successfully shared with the contacts you provided.

Stand-alone long-term care insurance (LTCI) may continue to be in the doghouse, but overall sales increased 12% in 2016, according to data from LIMRA.

LIMRA analysts report in a new commentary that premium revenue from new sales of three major categories of long-term care (LTC) planning products increased to $4.3 billion last year, from $3.8 billion in 2015.

New sales of individual stand-alone LTCI fell 13%, to $228 million, but sales of individual annuities that offer LTC benefits increased 2.1%, to $480 million.

(Related: The Long-Term Care Insurance Evolution Continues)

Sales of individual life-LTC hybrid products increased 16%, to $3.6 billion.

The LIMRA analysts presented a data series that starts in 2012.

Between 2012 and 2016, stand-alone LTCI’s share of the overall LTC planning products market that LIMRA tracks fell to 5.3%, from 17%.

Advocates for stand-alone LTCI argue that it provides purchasers with much better, more efficient protection against catastrophic LTC risk.

Issuers of life-LTC and annuity-LTC hybrids say that selling those products is easier, because many purchasers like the idea of getting some benefits from the products even if they never need long-term care.

Insurers are hoping that combining LTC benefits with other types of base products will help moderate some of the risks associated with offering stand-alone LTCI.

LIMRA analysts note in the commentary that about 52% of Americans ages 65 and older will eventually need some type of long-term care.

“While we don’t expect to see a rise in individual LTCI sales soon, combination products are a great way to fill the gap the decline in individual long-term care insurance sales has left while still meeting at least a portion of consumers’ long-term care needs,” the analysts write.

—Read 3 New Findings About Long-Term Care Planning Prospects’ Emotions  on ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on
Facebook and Twitter.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.