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Long-Term Care Insurance v. a Hybrid: AALTCI Gets the Numbers

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The American Association for Long-Term Care Insurance (AALTCI) has come out with a new long-term care (LTC) benefits product cost comparison analysis.

AALTCI looked at how much a consumer might pay to get long-term care benefits through a stand-alone long-term care insurance (LTCI) policy, versus how much the same consumer might pay to get the same amount of benefits through a life insurance policy that offers LTC benefits.


AALTCI considered several different coverage purchasing scenarios.

In one scenario, for example, AALTCI assumes that the consumer is a single, 55-year-old female. She is shopping for coverage that would provide a $505,000 pool of benefits at age 90, with 3% annual coverage growth.

That woman would pay $2,750 per year for a stand-alone LTCI policy providing that amount of coverage, according to AALTCI.

One life insurer would charge the woman $5,500 per year for a life-LTC hybrid providing a $505,000 pool of benefits at age 90.

A second life insurer would charge the woman $7,010 per year for that kind of pool of life-LTC hybrid LTC benefits, according to AALTCI.

If the woman goes with the life-LTC hybrid policies, she will get a maximum death benefit of $130,000 along with the LTC benefits, according to AALTCI.

In related news, AALTCI has also released new LTCI claim data, based on an analysis of data from the Connecticut Partnership for Long-Term Care.

The Westlake Village, California-based organization found that:

  • The average time between the purchase of LTCI coverage and the time the first claim arrives is 162 months, or about 13.5 years. That’s up from an average of 12.8 years in 2017.
  • The total amount paid to Connecticut partnership program claimants has ranged from $19 to $1.5 million. That compares with a range of $19 to $1.6 million in 2017.
  • The average amount paid to Connecticut claimants is $127,628, up from an average of $122,436 in 2017.

— Read AALTCI Sees Big Variations in 2019 LTCI Premiums, on ThinkAdvisor.

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