Popular on eTradeWire


Similar on eTradeWire

For Many Long-Term Care Insurance Rates Have Changed Little Over Five Years

eTradeWire News/10638153
LOS ANGELES - eTradeWire -- The cost for certain long-term care insurance policy designs has not changed significantly over the past five years according to the American Association for Long-Term Care Insurance (AALTCI).

"For men, rates actually may have declined slightly from where they were five years ago," explains Jesse Slome, director of the long-term care insurance organization.  "Policy costs for women are about the same until you add an inflation growth option, then there is a significant increase."

The analysis is based on a comparison of the Association's annual long-term care insurance Price Index data.  "In 2016, a 55-year-old male would pay $1,015 annually for a policy that provided $164,000 in long-term care benefits," Slome shares.  "According to the 2021 Price Index, a 55-year-old male would pay $950 yearly for the same level of coverage.  Adding the three percent compound inflation option did not dramatically increase what a male would pay for coverage."

The same is not true for single women.  "Women account for the vast majority of long-term care insurance claims so it's to be expected that costs for their coverage would be higher," Slome notes.  "Policy benefits that are guaranteed to grow by three percent annually are going to cost more because we are in such a low interest rate environment."

More on eTradeWire News
In 2016 according to the AALTCI Price Index a woman age 55 would have paid $2,580 for $164,000 of immediate benefits growing to $400,000 at age 85.  In 2021, the Association reports coverage with the inflation growth option will cost $3,700 annually at the time of purchase.  See the latest data at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2021.php.

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions.   To obtain long-term care insurance costs from a long-term care insurance specialist call the organization at 818-597-3227 or visit their website at
https://www.aaltci.org/long-term-care-insurance/.

Contact
AALTCI
***@aaltci.org


Source: AALTCI
Filed Under: Consumer, Insurance

Show All News | Report Violation

0 Comments

Latest on eTradeWire News