Long-Term Care Benefit Payouts Rose 7.7% in 2022

U.S. insurers paid $13.25 billion in claims for holders of standalone long-term care insurance policies in 2022, up 7.7% from the total for 2021, according to the American Association for Long-Term Care.

The number of claimants increased 2.7%, to 345,000, and the average amount of benefits per claimant increased 4.9%, to about $38,400.

That compares with a 2.6% increase in the average amount of benefits per claimant in 2021.

What It Means

Standalone long-term care insurance may be out of favor with insurers, but a significant number of your older clients may have it, and advisors need to be prepared to answer questions from clients who are using their coverage to pay long-term care bills.

The Backdrop

The oldest baby boomers are turning 77 this year.