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

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.