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May 2017  Volume 15, Number 5        
 

New Long-Term Care Insurance Policies Only Cost Seniors $100-$150 a Month

The cost of long-term care insurance continues to rise. A couple in their 60s purchasing new coverage could expect to pay 6-9 percent more compared to a year ago, according to the annual industry analysis of prices.

“A typical couple where both spouses are age 60 will pay between $100 and $150 a month each for long-term care insurance protection,” Jesse Slome, director of the American Association for Long-Term Care Insurance, said in a statement regarding the national trade group’s 2017 Long-Term Care Insurance Price Index, an annual examination of costs for new policies.

“We advocate for a ‘Good-Better-Best’ approach to long-term care planning,” Slome said.

Good coverage, Slome explains, provides benefits for up to 360 days with a benefit pool that increases each year as the policyholder ages.

“For many individuals who ultimately need long-term care, this is going to be sufficient or good coverage, and it’s certainly going to be far more affordable,” Slome said.

About half (41 percent) of current long-term care insurance claims end within one year, according to AALTCI data.

Meanwhile, the cost of policies for single men remained fairly level or, in some instances, actually declined compared to 2016.

“Our rate comparison for a single 55-year-old man showed a year-to-year decline of 20 percent in some instances,” Slome said.

A single male, age 55, could anticipate paying anywhere from $90 to about $150-per-month for long-term care insurance available from some of the leading insurers.

Costs for virtually identical policy coverage still vary significantly from one insurer to the next, according to the AALTCI’s 2017 Price Index.

The AALTCI analysis found rates varied by as much as 70 percent, a decrease from the prior year when some costs ranged by 94 percent.

“You generally only buy long-term care insurance once, so it’s important to do it correctly the first time,” Slome said.

For more information about long-term care benefits, please contact us.

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In this issue:

This Just In...

Big Data and Technical Advances Are Helping Employers Reduce Health Insurance Costs

How to Control Rising Drug Costs

Many Americans ‘Not Worried Enough’ About Retirement

New Long-Term Care Insurance Policies Only Cost Seniors $100-$150 a Month

 

 


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