According to a just-published report from the American Association for Long-Term Care Insurance, the national organization that advocates for long term care insurance http://www.aaltci.org/
“The inflation growth option increases your benefit each year but it can dramatically add to the cost of insurance protection,”
The trade group director explains that for every half-to-one percent decrease in investment return an insurer needs to charge 10-to-15 percent in higher premiums. “That’
The percentage of those individuals purchasing a policy with the five percent growth option declined compared to the prior year. “Once you explain the connection between investment return and the cost of increasing benefits by five percent people understand and make a choice to reduce their cost,” Slome concludes. “It’
The Association report is based on their annual study of over 150,000 new individual buyers with data published in their 2012-21013 Long Term Care Insurance Sourcebook
Based in Los Angeles, the American Association for Long-Term Care Insurance is the national trade organization with the mission of educating Americans about the importance of planning for the risk of long term care.
For additional information or to hear from a member of the Association call the national headquarters at (818) 597-3227 or visit the organization’