The nation’s long-term care insurers paid out $12.3 billion in claims during 2021, a significant increase over prior years according to the American Association for Long-Term Care Insurance (AALTCI).
According to the association’s annual report of claims paid, the $12.3 billion paid represents an increase of $2 billion over the total claim benefits paid by the industry in 2018.
“Claim benefits were paid to some 336,000 policyholders,” said Jesse Slome, AALTCI’s director, in a statement. “Some claims amount to small amounts and some can be significant, totalling over $1 million. Even if you do a simple calculation, the average claim amount paid out for the year would equal $36,600. And claims can last for several years.”
The number of individuals paid during 2021 grew by roughly 11,000 compared to the prior year.
The amount reported represents claims for those owning traditional or health-based long-term care insurance, Slome said.
The association’s report does not include data for those who have purchased a linked-benefit policy. These include life insurance or annuity policies that can also provide payout for qualifying long-term care needs.
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