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.

Options Exist For Those Who Can’t Qualify For Long Term Care Insurance

The percentage of individuals who apply for long term care insurance and are declined can range from about 10 percent to as high as 44 percent reports the American Association for Long Term Care Insurance.

“People mistakenly believe they can’t be declined for long term care insurance but that’s simply not the case,” explains Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI).  The Association just released copies of its 2015/2016 Long Term Care Sourcebook that reports on the percentage of 2014 applicants who were declined.

“It’s distressing because people face a very real risk of needing care at some point,” shares Slome.  “The good news is that there are options available in the form of what’s often referred to as short-term care insurance.”

A short term care insurance policy will generally provide benefits for up to a year.  “For many people that’s more than enough coverage,” Slome acknowledges.  According to the Association, some 49 percent of all long-term care insurance claims last one year or less.

What’s especially attractive about these policies is that some offer what’s called a simplified application.  “Some have just a few Yes-No questions and that makes these very valuable to older individuals who may already have health issues,” Slome adds.

The Association has just created several new consumer guides and pages on it’s website focused on short-term care insurance products.  To learn more, go to www.aaltci.org/short-term-care-insurance.

Special Guide For North Carolina Residents On Medicare

Individuals lack an understanding of health care costs that are not covered by Medicare or their individual health insurance including ObamaCare declares the head of the American Association for Long Term Care Insurance.

“People don’t think about these things until they go to the doctor, a hospital or need care and then they are shocked to get a bill,” explains Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI).  Slome authored the new guide “Shock Treatment” to create a heightened understanding among consumers.

“We are releasing the guide first as part of an effort focused on North Carolina residents who can benefit from a special insurance policy that affordably covers some of these costs,” Slome notes.    ”We recently became aware of a home health care insurance policy that offers residents of North Carolina, especially those over age 65, both home care benefits as well as additional benefits that pay for care that may not be covered.”

The Association does not sell insurance policies, Slome points out.   “A North Carolina female age 65 would pay $240 a year for around $50,000 of potential home care benefits,” Slome explains.  “Even if she doesn’t need home care for many years to come, this policy will pay up to $250 back for prescription medications each year and that’s just one of the additional benefits.”

“To be honest, every North Carolina resident over the age of 60 should take a look at this special insurance policy available to them in their state,” Slome advises.   “You can get similar coverage in other states but not at the same affordable price approved by the North Carolina Department of Insurance.”

Long Term Care Insurance Association Reports 2015 Home Care Costs

The rate for a home health aide averages $21 an hour according to the latest report published by the American Association for Long Term Care Insurance.

“When it comes to long term care, the vast majority of care is provided in the home,” explains Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI).  The national organization included costs for home care services, assisted living community and skilled nursing home care as part of the 2015 Sourcebook for Long Term Care Insurance Information.

“Just over half of all long term care insurance claims start with the policyholder receiving care at home,” Slome notes.    ”First, that’s where most of us would prefer to be as opposed to a nursing home setting and the insurance policy benefits make it possible for people to get that needed care at home.”

According to the AALTCI report, costs for home care services have remained relatively stable over the past few years.  “People buying long term care insurance today need to understand that having insurance that pays some but not all of the cost is a prudent way to plan,” Slome shares.  “It’s also a way to make this protection very affordable, with a 55-year old paying around $100-to-$130 a month for protection.”