Increased Long Term Care Insurance Sales Will Benefit Home Care Providers

The nation’s providers of home health care aides and services can expect significantly increased revenue as a result of growing sales of long-term care insurance products.

“We expect 300,000 Americans will purchase a new traditional long term care insurance policy or a combo product in 2015,” predicts Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI).  “The maximum potential benefit value for just 2015 new sales will equate to about $5 billion in future benefit payments for home care services.”

Some eight million Americans currently possess some form of long-term care (LTC) benefit and while sales of traditional LTC insurance products have declined in recent years, Slome notes that sales of life insurance and annuity policies that offer long-term care benefits are increasing.  “For the first time, we project annual sales of the newer options will equal and quite possibly surpass sales of traditional long-term care insurance policies.”

The Association estimates the total maximum potential benefit value to all current holders of long-term care insurance policies will approach $2 Trillion (2014 dollars).   The nation’s insurers paid out $7.5 Billion in benefits in 2013 according to an AALTCI report.  “By 2032, insurers expect to pay out in excess of $34 billion as today’s 60-year old policyholder reach their 80s,” Slome notes.

Home health care providers and agencies will be among the leading beneficiaries according to AALTCI analysis.  “Of the billions paid out each year, nearly 30 percent currently pays for home care services,” Slome notes.  “That percentage will grow significantly in the years ahead.”  The most recent Association analysis found that 51 percent of all newly opened claims in 2013 paid for home care services.

“The number of Americans requiring help with daily living at home is expected to more than double from the current 12 million to 27 million by 2050,” explains Margaret Haynes, Chief Operating Officer of Right at Home an international franchise organization.

“People want to remain in their own home when care is needed,” Slome adds.   “As millions of Americans live into their 70s, 80s and beyond, long term care insurance policies will enable millions to receive the care they need in the setting they prefer.”

Long Term Care Insurance Specialist Saves Woman $18,600

Consumers today don’t understand the important role their medical records play in what they will pay for long term care insurance planning cites the head of the American Association for Long Term Care Insurance.

“An agent can only give you his or her best guess of what you’ll pay for long-term care insurance,” declares Jesse Slome, director of the American Association for Long Term Care Insurance.   “The insurance company will examine your medical records and may even conduct their own testing before they tell you what your coverage will cost.   Consumers do not understand how very important those medical records are.”

The Association director pointed out the latest Real People installment showcasing real stories of how working with a knowledgeable long-term care insurance specialist benefited the consumer.

“In this case, the applicant was a single woman in her late 50s who noted that she had been treated for anxiety,” Slome shares.  “However, it turns out that her doctor used the terms anxiety as well as depression interchangeably.   He took them to mean one and the same but that’s not how the insurance company interpreted the matter when reviewing the medical records.”

As a result, the insurance company set her premium at 22 percent more per month.  “Over the years she would have paid $18,600 more to the insurance company simply because of the one word in the report,” Slome declared.   Instead, the long term care insurance specialist helped the individual request written clarification from the physician that resolved the matter.

Long Term Care Insurance Association Urges Planning By Boomers

A national awareness effort implemented today by the American Association for Long Term Care Insurance is urging the nation’s 76 million baby boomers to take long term care planning seriously.

“Americans are living longer and few have any plan in place to deal with the very real risk of needing extended care as the simple result of living a long life,” declares Jesse Slome, executive director of the American Association for Long Term Care Insurance.

In advance of Long Term Care Awareness Month which begins Saturday, November 1st, the trade group released a national news story urging the nation’s baby boomers to plan.

“Too many families wait to address long-term care and find they have very limited options once care is needed,” adds Tiffany Albert, president and CEO of LifeSecure Insurance Company, a LTC insurance provider and supporter of the Association’s efforts and Long Term Care Awareness Month.  “Planning ahead is critical to ensure care is received in a preferred setting, such as at home, and avoid serious consequences that will impact the entire family.”

According to AALTCI’s Awareness Month report, over half (54%) of new long-term care insurance applicants are between ages 55 and 64.   Insurers paid some $7.5 billion in claim payments to over 273,000 policyholders last year.  Over half (51%) of new claims were for home care services and women accounted for 64% of claims.

Reuters
http://www.reuters.com/article/2014/10/30/aaltci-long-term-care-idUSnPn9Bf8pp+90+PRN20141030

MarketWatch (Wall Street Journal digital)
http://www.marketwatch.com/story/baby-boomers-urged-to-consider-long-term-care-insurance-during-awareness-month-2014-10-30

MarketPlace (American Public Radio)
http://thenumbers.marketplace.org/publicradio/news/read?GUID=28586197