Some 350,000 Americans purchased long-term care protection in 2018, including both traditional long-term care insurance as well as combination products.
The statistic is from a new report released March 26 by the American Association for Long-Term Care Insurance (AALTCI).
“Individuals understand the consequences associated with living a long life which often include the need for long-term care,” said Jesse Slome, director of AALTCI. “Those who want to have a plan continue to see value in products which can pay for costs associated with needing that care.”
According to the Association, of the roughly 350,000 individuals who purchased coverage, about 16% opted for traditional health-based long-term care insurance.
“The trend to combination products continues and they can be a very viable option,” Slome said. “Unfortunately many consumers are tainted by what they have read about older stand-alone policies. The traditional long-term care insurance policies offered today do not have the premium instability of the older policies.”
The growth of combination products in recent years has prompted more insurance companies to offer such products and to expand their offerings. “In the past, most of these policies were sold as single premium requiring a single payment of $50,000 to $100,000 per individual,” Slome said. “Today, insurers are offering flexible premiums which allow annual payments for this important protection. That’s far more consumer friendly and something buyers clearly prefer.”
Headquartered in Westlake Village, Calif., AALTCI advocates for the importance of long-term care planning. The organization connects consumers with knowledgeable professionals who are independent advisors for no-cost, no-obligation long-term care insurance quotes.