Los Angeles, CA - February 5, 2016; A couple in their 60s purchasing new long term care insurance coverage can expect to pay almost 10 percent less in 2016 compared to a year ago according to the annual industry analysis of prices.
"A couple where both spouses are age 60 can now pay $100 a month each for a good plan of protection that pays benefits for care at home or in a skilled nursing home," reports Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI). The national trade group released their 2016 Long-Term Care Insurance Price Index.
The latest Price Index reflects the 'Good-Better-Best' approach to long-term care planning advocated by the organization's director. "This has never been a one-size-fits-all product and many consumers are regrettably presented with just one option, often the most costly," explains Slome.
Good coverage he shares provides benefits for up to 360 days with a benefit pool that increases each year as the policyholder ages. "For many, this is going to be sufficient coverage, and it's certainly going to be far more affordable," Slome adds. About half (49%) of current long-term care insurance claims end before one year according to AALTCI data.
According to the 2016 LTC Price Index, rates for a 60-year-old couple declined between seven and nine percent compared to the prior year. "You had some high-cost providers exit the market and you had some that readjusted policy pricing," Slome explains to account for the year-to-year change.
2016 Costs For Virtually Identical Coverage Vary By 20-To-94 Percent
What has not changed, according to AALTCI's 2016 Price Index, is the finding that costs for virtually identical policy coverage vary significantly from one insurer to the next. "Each insurer sets their own rates and available discounts and the price for virtually identical coverage can vary," Slome states. The AALTCI analysis found rates varied by as much as 94 percent. "You generally only buy long term care insurance once, so it's important to do it correctly the first time," he adds.
Free access to read informational guides is available on the Association's website. To obtain long term care insurance costs from a professional with expertise specifically in long term care insurance products offered by multiple leading companies call the national organization at (818) 597-3227 or visit the Association's website at www.aaltci.org.
To learn more about short term care insurance options, visit the National Advisory Center for Short Term Care Information, at www.shorttermcareinsurance.org
The American Association for Long Term Care Insurance (www.aaltci.org) is the national trade organization focused on educating individuals about the importance of planning for the risk of long term care. The American Association for Medicare Supplement Insurance (www.medicaresupp.org( focuses on Medigap industry issues and helps link consumers with Medicare Supplement agents. The National Advisory Center for Short Term Care was established in 2015 to build awareness for the important role short term care insurance plays in protecting seniors.