Majority Of Short Term Care Insurance Buyers Are Over Age 60

Nine out of 10 individuals who purchased short-term care insurance coverage in 2014 were age 61 or older according to a just released study by the National Advisory Center for Short Term Care Information.

“Short-term care insurance is clearly seen as a benefit for seniors,” declares Jesse Slome, director of the National Advisory Center.  The new organization, established as part of the American Association for Long-Term Care Insurance, conducted the first industry benchmark study examining sales and buyer data on over 30,000 policies issued by nine leading insurers who market short-term care insurance policies.

According to the study, just over half (51%) of buyers were between ages 61 and 70.   Over one-third (36%) were between ages 71 and 80 when they applied for their short-term care insurance policy.  “Some four percent were over age 80,” Slome reports.   A number of short-term care insurance policies will accept applicants up to age 89.   Nine percent of buyers were age 60 or younger according to the study.

“These products are certainly attractive to the senior market,” Slome explains.   “Simplified health underwriting makes them ideal options for individuals seeking long-term care coverage who have health issues or for Medicare beneficiaries who have coverage gaps in their Medicare Advantage or Medicare Supplement insurance policy.”

New Video Shares Long Term Care Insurance Options For Single Women

Women have the greatest need for long term care but also face significant hurdles when considering long term care insurance options.

“This is especially true for women on their own which we refer to as single, unmarried, divorced or widowed women,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance and the National Advisory Center for Short Term Care Information.

“Single women pay more for long term care insurance than men because their risk is much higher,” Slome states.  According to the trade group, two-thirds of all long term care insurance claim benefits are paid to women.  “Women on their own may not have the income or retirement savings to afford a traditional LTC policy but they certainly would benefit from having some protection in place,” Slome adds.

To educate single women about a little-known option available to those where cost or meeting health qualifications are an issue, the trade group has posted a new 12-minute educational video.

“Women who are alone and in their 50s, 60s and 70s need to arm themselves with information to make informed decisions,” Slome notes.  “Our goal is to continually uncover viable options that we share.”  The trade group does not sell insurance products or favor any particular company.  The organization has members who are long term care insurance professionals.

To watch the video, go to https://www.youtube.com/watch?v=WRLNev335gQ.

The National Advisory Center for Short Term Care Information was established by the American Association for Long Term Care Insurance to create heightened awareness among both consumers and insurance professionals.

Long Term Care Insurance Option For Seniors Between 75 and 79 Explained

Finding long term care insurance coverage after age 70 is difficult as leading insurers scrutinize health and most stop issuing new policies after age 75.  A new video posted by a trade group explains an option worth considering.

“Our phone rings regularly with seniors in their 70s or their adult children who are looking for long term care insurance,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).  “Unfortunately for those over age 75 we have to deliver some bad news.”

According to Slome, an option does exist for individuals who are age 79 or younger than can be a viable option.   “There are several insurance companies that offer what I refer to as short term care insurance because it provides coverage for up to one year,” Slome shares.  “That’s better than no coverage and indeed almost half (49%) of all long term care insurance claims end within one year, so it might just be enough coverage.”

The organization head explains they do not recommend any particular insurance company.  “Our role is to educate both consumers and insurance professionals to available options,” Slome notes.  “This is just such a viable option well worth considering when you understand the importance of having some long term care protection in place.”

The organization has created a four-minute video that provides an overview.  It can be seen at https://youtu.be/YqAGWt_kDDE

What Short Term Care Insurance Policy Features Are Most Commonly Offered?

A study of twelve short term care insurance policies examines policy features including Benefit Period, Elimination Period and Optional Riders.

The study was conducted by CSG Actuarial and reported by the National Advisory Center for Short Term Care Information, part of the American Association for Long Term Care Insurance (AALTCI).

“Changes in health care insurance benefits, Medicare coverage and long-term care insurance are creating heightened interest in short-term care or recovery care products,” explains Jesse Slome, director of the National Advisory Center for Short Term Care Information.  Short-term care products are defined as those providing coverage for one year or less.

“There is potential for significant growth,” says Bryan Neary, FSA, MAAA, Principal and Consulting Actuary for Omaha-based CSG Actuarial.  “Several new insurers are entering the marketplace and policy sales and premium should grow in the years to come.”

According to the study, 91.7 percent of the companies offered policies with a 360 day Benefit Period (BP).  Some 83.3 percent offered a 150-200 day option and half (50.0%) offered a 90-day BP.

“One of the features that makes these products extremely attractive is the ability to select a 0-day Elimination Period (EP),” Slome explains.  “Most traditional long-term care insurance policies require that a doctor certify a need for care lasting longer than 90 days and have a 90-day EP.  With a 0-day EP the policyholder accesses policy benefits early on when they need care.”

The study found that 66.7 percent of available policies offered a 0-day Elimination Period.  Some 75 percent offered a 20-day EP and a third (33.3%) offered a 30-day E.P.

Just over half of the policies (58.3%) offered an inflation growth rider that increased base benefits by five percent compounded annually.  Half (50.0%) offered an five percent simple inflation option.