The American Association for Long-Term Care Insurance has released more data from its latest long-term care insurance (LTCI) issuer survey: amazing facts about exceptionally catastrophic LTCI claims.
The issuers still in the LTCI market often try to limit policy durations to five or fewer years. In the past, however, many consumers ended up with policies that offered lifetime benefits.
Some policyholders got a great bargain.
Insurers told AALTCI of one male policyholder who has received about $1.6 million in LTCI benefits, over a period of 9 years and 10 months.
The man paid $4,474 per year for the coverage, and he paid premiums for just 6 years and 6 months before he filed a claim.
The female with the largest known claim has received a total of $2.6 million in benefits over a period of 20 years and 9 months.
She began collecting benefits when Bill Clinton was president.
Her policy cost $2,600 per year. She paid premiums for 13 years and 9 months before her claim began, according to AALTCI data.x
— For more of our LTCI market coverage, see our Long-Term Care Planning.