Should Long Term Care Insurance Cost Women More?

There is sound reasoning that explains why women pay more for long term care insurance contends one of the nation’s leading long term care insurance experts.

“Prices for insurance are based on risk which is why men pay more for life insurance and bad drivers pay more than good drivers,” declares Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI). Slome was reacting to the National Women’s Law Center administrative complaint filed against Genworth, John Hancock, Transamerica and Mutual of Omaha on the grounds that gender-based premiums for long-term care insurance violated a provision of the Affordable Care Act.

“I wonder if they realize that men pay more for Medicare Supplement insurance, which augments Medicare health benefits?” Slome posited. He noted that a recent comparison of equal policy amounts revealed that men paid 15 percent more than a same-age female applicant.


“Women have a far greater risk of needing long term care insurance and, in fact, receive two-thirds of the claim benefits paid by insurers,” Slome noted. The organization recently released the results of a study reporting that long term care insurers paid some $7.5 billion in claim benefits in 2013, a significant increase over the prior year.

According to AALTCI, unisex rates, where single women pay the same as single men, are still available in a number of states. “The opportunity to take advantage of this is ending as insurers continue to roll out new policies on a state-by-state basis,” Slome admitted. The Association recently reported that unisex rates could still be found in 16 states. “But the number keeps declining which is why we urge single women in their 50s and 60s to at least inquire into what long term care insurance costs,” Slome shared.

Five Long Term Care Insurance CEOs Address AALTCI Conference Today

Where is long term care insurance heading will be the focus of a 90-minute keynote session at the nation’s largest long term care insurance conference set to begin this Sunday in Kansas City.

Organized by the American Association for Long Term Care Insurance, an industry trade group, a highlight of the three-day event will be the LTC CEO Forum where five heads of leading insurers address the past, present and future. “The past five years have witnessed enormous change in the long term care insurance industry and this is the time to hear what’s in store,” declares Jesse Slome, director of the American Association for Long-Term Care Insurance. “Five industry leaders who represent leading players with different perspectives will share their outlook and perhaps most important question each other and take questions from the audience.”

Because of the expected heightened interest, the CEO panel session will be broadcast free of charge online. Access is available to any insurance agent or financial professional with Internet access. “This marks the first time that live sessions will be broadcast direct from a major insurance industry conference that can be accessed for free,” Slome adds. The conference broadcast is being streamed by Virtual Insurance Conferences and Expos, an entity established to broadcast insurance events.

According to Slome, heads of five leading insurers including Genworth Financial, John Hancock Insurance, Transamerica Long Term Care, Lincoln Financial and Northwestern Mutual will participate in the panel. Those attending will be allowed to pose questions to the panel. “Those watching online will also be able to ask questions via the free online chat taking place,” Slome notes.

Group Long Term Care Insurance Gains Favor As Options Increase

An increasing number of small businesses are investigating long term care insurance as an employee benefit or as a tax-favored benefit for owners according to a just-published report.

“Interest in long term care insurance is growing again especially among firms with 20-to-99 employees,” reports Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI) a national trade group.    There are five million companies with that many employees according to the latest U.S. census data.  They account for over 20 million workers.

According to AALTCI, many insurers offer discounts to group enrollees compared to standard plans available to individuals.  “Today, there is enormous flexibility in terms of benefit options as well as who is offered coverage,” Slome notes.  “Plans can be offered on a voluntary basis paid by payroll deduction or the employer may contribute a nominal amount.  It may even be possible to offer company-paid coverage exclusively for executives and key employees.”

Long Term Care Insurance Plans Not Regulated By Obamacare

“Long term care insurance plans are not regulated under the Affordable Care Act (Obamacare) so employers have a great deal of flexibility,” explains George Mellendorf, president of LTC Solutions, a national distributor of individual and multi-life long term care insurance headquartered in Cape Coral, FL.   “Even small groups with as few as 10 employees can qualify for simplified health underwriting and pricing discounts that can reduce costs by between five and 10 percent annually.”

The AALTCI analysis of 8,000 employer plans sold in the past few years found that 21 percent of participants were less than 54 years of age with four percent of buyers age 44 or younger.  “Participants in employer-sponsored plans tend to be younger and nearly 40 percent had incomes under $75,000,” Slome notes.  “That is an important trend and we foresee continued growth of sales to buyers within small groups in the years ahead”, explains Tim Kneeland, President of Transamerica Long Term Care, a leading provider of long term care policies within small groups.

Individuals or small employer groups interested in learning more or seeking  long term care insurance costs can contact me.

Tips on Long Term Care Planning

Long-term care planning must be personal. There is no one right way to plan for long-term care. Evaluate your options with a critical eye. Long-term care is not just a financial risk but is also an emotional issue that touches deeply held values.

Become educated about long-term care. Talk to friends and family about their experiences as caregivers and the different ways they paid for services.

Ask questions if you're confused. Don’t sign anything until you have an answer to all your questions. Aside from research, the most important safety tool is simple common sense. Don’t allow yourself to be pressured and don’t rush into anything.

Work with experienced advisors that you trust.

Long Term Care Insurance Rates Vary For Smokers

The latest example of how a couple reduced their cost for  long term care insurance has been added to the American Association for Long Term Care Insurance Consumer Information Center.

“About one in five American adults smoke and, as a result, they will pay more for various insurance products including long term care insurance,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance, a national trade group.

“However, while some insurers charge around 10 percent more, others will charge up to 45 percent more for the same level of coverage.”

An example of a real couple from Wisconsin has just been added to the Association’s website sharing real examples of ways to reduce the cost or gain better coverage.   ”The new feature on the Association’s website has generated enormous positive feedback and has become one of the most highly read sections on our website,” Slome adds.

“In this situation, the couple who were both in their late 50s received a recommendation for long term care insurance that would cost around $4,100 annually.   “While the policy was from a leading insurer, they decided to get a second opinion and requested information from a specialist who represented multiple long term care insurers,” Slome notes.  “Unfortunately, the inexperienced insurance agent either did not know the company he recommended charged a significantly higher premium to smokers.”

As a result, the couple were able to purchase a significantly higher level of long term care insurance benefits that actually cost them less money.   ”A benefit of specializing in this business is not just knowing more about the products but knowing the significant pricing differences that really matter over many years.”

“When starting the process of looking into long term care insurance, one of the most important decisions you’ll make is deciding who to work with,” Slome counsels.  The Association director suggests three questions to evaluate an insurance professional’s expertise in the long-term care insurance field.  “Ask how many individuals they have helped get insurance, the number of years they have focused on LTC insurance and how many insurance companies they are appointed with,” he advises.  “If an insurance broker is appointed with multiple companies, he or she will do the comparison shopping for you.”

Long Term Care Insurance Savings Tip Added To Association Website

The latest tip for saving money and getting better long term care insurance costs and benefits has been added to the website of the American Association for Long Term Care Insurance.

“The new section offering consumers real examples of ways real people achieved significant savings and found ways to get better benefits has become one of the most highly read sections on our website,” declares Jesse Slome, executive director of the American Association for Long Term Care Insurance, a national trade group.   The organization has been adding one new example each week.

“People mistakenly think all long term care insurance policies are the same,” Slome notes.  “Not only are policies different but prices are different.   An off-the-shelf approach often just isn’t in the best interest of the prospect and we’ve been showcasing real examples of such situations.”

The latest scenario discusses how a financial planner proposed coverage costing $5,000 a year that the single woman, age 56, felt was more than she wanted to spend.   “Working with a specialist who really understood how to take advantage of available discounts, she was able to get coverage for both her and her significant other for $1,400 a year,” Slome explains.

“Some insurance and financial products are highly specialized and long term care insurance is certainly one where the consumer can benefit by speaking with a knowledgeable specialist,” Slome adds.  “In this particular situation, the male in the relationship was adamantly opposed to getting insurance coverage.  However, by getting him coverage that cost $300-a-year, she was also able to save $800-a-year. ”

“One of the most important decisions you’ll make is deciding who to work with,” Slome advises.  The Association director suggests three questions to evaluate an insurance professional’s expertise in the long-term care insurance field.  “Ask how many people they have helped get this insurance, how many years they have focused on LTC insurance and how many insurance companies they are appointed with,” he advises.  “If an insurance broker is appointed with multiple companies, he or she will do the comparison shopping for you.”

Long Term Care Insurance Education Campaign For Those With $1 Million Plus

A long term care insurance information campaign focused on the over 9.6 million Americans worth $1 million or more was called for today.

“The number of Americans worth over $1 million has increased 24 percent increase over the past four years.,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance, a national trade group.  “Individuals worth between $1 and $5 million would benefit from an understanding of how long term care insurance can benefit their financial and family situation.”

According to a recent report, the number of Americans worth between $1 million and $5 million reached 9.63 million in 2013, up from 7.8 million in 2009.  The number of those worth between $5 and $25 million grew to 1.2 million up from fewer than one million in 2009.

Being worth over $1 million is a commendable achievement and many mistakenly believe self-insuring against risks like long term care is the advisable option.  “There are reasons why transferring some of the risk with insurance makes both financial and psychological sense,” Slome points out.  The long term care insurance expert notes that assets may not be liquid, forcing sale at a less than ideal time.

“Individuals who have acquired significant assets often have plans to leave the funds to family members or a particular church or organization,” the long term care planning expert noted.  “Insurance can help keep their financial plans in place but financial benefits are just part of the reason individuals should consider protection.”

Long term care insurance planning for wealthy individuals involves comparing a variety of plan options.  “People mistakenly believe all insurance is pretty much the same and nothing could be farther from the truth today,” Slome acknowledges.  “If you have assets, you may want to consider a more modest level of insurance that will save you money,” he adds.  “If you need care, insurance will pay some of the cost and your personal savings will pay a part but not all.  That can make good financial sense.”