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AALTCI Sees Big Variations in 2019 LTCI Premiums

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Men will continue to pay a lot less than women do for stand-alone long-term care insurance (LTCI) in 2019, but the gap between typical rates for men and women appears to be narrowing.

The American Association of Long-Term Care Insurance (AALTCI) reports that a single 55-year-old man will pay an average annualized premium of $2,050, and a single 55-year-old woman will an average annualized premium of $2,700.

(Related: LTC Costs Continue to Rise in 2018, but Some Buyers See a Drop)

The average annual premium has increased 9.6% for men, and decreased 8.9% for women.

The average gap between the average annual premium for 55-year-old men and the average annual premium for 55-year-old women has fallen 41%, to $650.

In 2018, the average annual premium increased 12% for 55-year-old men and 14% for 55-year-old women.

AALTCI assumed when it gathered the data that the initial pool of benefits would be $164,000, and that the purchasers would choose 3% compound annual inflation protection.

AALTCI bases its LTCI premium data on a survey of insurers.

AALTCI did not say how many issuers participated in the latest survey, but it noted that the cost of coverage varied widely from carrier to carrier.

For single men, for example, the most expensive carrier charged 123% more than the cheapest carrier.

Insurance prices can reflect factors such as an issuer’s own claim experience, the issuer’s appetite for business, and the issuer’s financial strength rating.

Jesse Slome, AALTCI’s director, said in a statement that insurers’ price increase strategies also varied widely.

“For many insurers, there was no increase compared to the prior year,” Slome said.


AALTCI has posted its latest LTCI cost figures here.

AALTCI’s earlier LTCI cost reports are available here.

— Read Life Insurers, Health Insurers Clash Over Penn Treaty Coverage, on ThinkAdvisor.

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