Long Term Care Insurance Paid Claims Increase; Home Care Benefits Growing

News provided by

American Association for Long-Term Care Insurance

Feb 18, 2015, 10:18 ET

LOS ANGELES, Feb. 18, 2015 /PRNewswire-USNewswire/ -- Americans who purchased long-term care insurance are receiving increased benefits, primarily for home care services — good news for millions of the nation's aging seniors.

"Eight million Americans have purchased long-term care insurance and an increased number are now starting to claim benefits," explains Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI). "Most people mistakenly associate LTC with skilled nursing home care, but over half (51%) of all newly opened claims begin with home care."

"In 2014 we paid $105 million in claim benefits, a 12 percent increase over the prior year," reports Bill Naylon, President of MedAmerica Insurance Company a leading provider of long-term care insurance protection. "As more Americans purchase this important protection and existing policyholders reach the age when care is often needed, we are prepared to continue delivering on our promise to pay."

In 2014, approximately 275,000 Americans received claim benefits as a result of owning long-term care insurance protection. Roughly two-thirds of all beneficiaries are women according to AALTCI's most recent study of new claims.

"As Americans live longer, long-term care planning is an essential part of retirement planning," adds Slome. "This protection is best purchased in your 50s and 60s when you are still able to meet the health qualifications and costs for coverage are lower," Naylon explains.

Over half (54%) of new LTC insurance applicants are between ages 55 and 64 according to AALTCI's most recent buyer analysis. "Good coverage today can cost about $100-a-month for a 55-year-old healthy male," acknowledges Slome. "That's for roughly $160,000 of benefits which covers quite a bit of care. Add a flexible inflation growth option and your benefits grow over time." Most insurers charge higher rates for single women but offer discounts for couples or partners who both apply for coverage.

While most new claims begin for policyholders who are 70 or older, nearly nine percent of claims begin prior to age 70. According to AALTCI, leading causes for home care claims are stroke, Alzheimer's, arthritis, cancer and injury.

To learn more about long-term care insurance planning including ways to reduce costs for this important protection, visit AALTCI's website or call 818-597-3227. To read six guides with consumer tips go to www.aaltci.org/guides.

SOURCE American Association for Long-Term Care Insurance