Long-Term Care Insurance Policy Purchase To Claim Timeline Data Released

LOS ANGELES - May 13, 2024 - PRLog -- The average individual starts a long-term care insurance claim some 190 months after purchasing their coverage according to new data released today by the American Association for Long-Term Care Insurance.

"Long-term care insurance provides benefits should you require care in your own home or some qualified facility," explains Jesse Slome, director of the long-term care insurance organization. "Each year, long-term care insurance companies pay billions of dollars in benefits to hundreds of thousands who previously purchased this coverage."

The long-term care insurance expert notes that people typically must obtain long-term care insurance protection years before they actually need care. "Insurers require that applicants meet stringent health requirements before they will issue a policy," Slome notes. "You'll pay a few thousand dollars each year for the potential to get back hundreds of thousands in benefit coverage."

"The most recent data finds that average number of months between purchase and claim is 190 months," reports Slome. The data represents a nominal increase over the Association's prior analysis released a few years ago.

"Of course, average means that some people begin getting benefits much sooner," Slome admits. "Others may go longer but this we know for sure; if you live a long life, chances are very high that you'll need long-term care."

Typically, people require long-term care services at older ages. "The need is generally the result of aging and needing help and assistance," Slome points out. "That said, the number one reason people need care is the result of Alzheimer's disease or dementia. But younger people in their 30s and 40s  also have tapped their long-term care insurance following an accident or serious illness."

According to the Association's 2024 Long-Term Care Insurance Price Index, a couple both age 60 can expect to pay $5,800 annually to have each have coverage worth $345,500 when they reach age 85. "Using simplified math, the couple will have paid in about $145,000 for almost $700,000 of long-term care insurance benefits available for their needs."

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. Access the latest long-term care insurance statistics and request policy information at https://www.aaltci.org/long-term-care-insurance/learning-.... Slome is also director of the American Association for Medicare Supplement Insurance. For Medicare insurance information go to https://www.medicaresupp.org.