What age is the best age to start long-term care planning?

I like to say the sweet spot is between age 52 and 64 ... but keep reading. First, yes, the sweet spot is generally between your mid-50s and mid-60s. I like to say start before age 64 because once you qualify for Medicare, chances are you will take advantage of all the free preventive health exams they provide. Those exams are great. But, if your doctor finds a condition, it could prevent you from health qualifying for long-term care insurance no matter how much you are willing to pay. And, while most long term care insurance claims start at older ages, don't forget that younger people get illnesses in their 40s and 50s like MS and Parkinson's that can require the need for years of care. Just something to think about.

Long Term Care Insurance Age 65 Waiting Penalty Discussed

A couple that waits to purchase long term care insurance until age 65 will pay nearly 70 percent more than had they considered coverage when they both were age 60.

“I tell consumers the sweet spot for long term care planning is between ages 55 and 65, but the sooner the better,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI).   Some was addressing mistakes people make when looking into long term care insurance.

According to the Association’s 2015 LTC Insurance Price Index, a 60-year old couple would pay $2,170 for good coverage that provided both spouses with about $165,000 of long term care benefits.  “The same coverage would cost the couple $3,590 a year, or 65 percent more, if they were age 65,” Slome explained.  “And, that is at today’s prices.  Someone who is age 60 today will likely pay more in five years because new policy rates tend to increase every year.”

Slome shared that many consumers perceive long term care insurance is ‘too expensive’ to buy.  “Many insurance agents simply focus on what I call a ‘fully loaded’ policy which of course makes the policy cost thousands of dollars,” Slome adds.  “If you can afford the coverage, more is always nice, but for most consumers a far more modest plan will be sufficient to meet their needs.  And, it will be far more reasonable.”

The long term care insurance expert noted that many agents only sell one or two long term care insurance policies a year.   “Many of the insurers now offer some really consumer-friendly benefit options such as the ability to buy more coverage in the future without having to meet health requirements,” Slome shares.  “An off-the-shelf approach speeds up the sales process but isn’t always in the customer’s best interest.”

AALTCI and National Underwriter Team Up for Long Term Care Sales Conference

The American Association for Long Term Care Insurance and the NU Life & Health Network announced plans to produce a live online broadcast from the 2015 National Long Term Care Solutions Sales Summit.

“We are so pleased to have NU Life & Health and Retirement Advisor magazines as a partner in this effort,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance.   “This marks the first time the National Long Term Care Summit will be held in the nation’s Capital and we know the online broadcast will benefit thousands of insurance agents, brokers and financial advisors who market long term care products.”

“We are very excited about our partnership with the AALTCI Fall Sales Event,” said Tashawna Rodwell, Group Publisher of the National Underwriter Life & Health. “Collaboration with the AALTCI to help educate advisors on Long-Term Care best practices is crucial in a time of constant change. We are proud to support the Long-Term Care Industry and the agents, brokers and financial advisors who continue to advance it.”

The 2015 LTC conference takes place on Tuesday, October 27.   Four leading long term care insurers have agreed to underwrite the costs involved in making the online broadcast available free of charge.  “We thank these leading companies, Genworth, Transamerica, Nationwide and John Hancock who are truly committed to producer awareness, education and building industry sales,” Slome added.

For those not interested in attending, access to view the online broadcast will be completely free.   “All you need is a computer with Internet access,” explains Slome.  “You’ll see the speakers, view their presentation and be able to chat with others and even ask questions.”  The broadcast has a capacity for 5,000 simultaneous viewers.

Long Term Care Insurance Age 65 Waiting Penalty Discussed

A couple that waits to purchase long term care insurance until age 65 will pay nearly 70 percent more than had they considered coverage when they both were age 60.

“I tell consumers the sweet spot for long term care planning is between ages 55 and 65, but the sooner the better,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI).   Some was addressing mistakes people make when looking into long term care insurance.

According to the Association’s 2015 LTC Insurance Price Index, a 60-year old couple would pay $2,170 for good coverage that provided both spouses with about $165,000 of long term care benefits.  “The same coverage would cost the couple $3,590 a year, or 65 percent more, if they were age 65,” Slome explained.  “And, that is at today’s prices.  Someone who is age 60 today will likely pay more in five years because new policy rates tend to increase every year.”

Slome shared that many consumers perceive long term care insurance is ‘too expensive’ to buy.  “Many insurance agents simply focus on what I call a ‘fully loaded’ policy which of course makes the policy cost thousands of dollars,” Slome adds.  “If you can afford the coverage, more is always nice, but for most consumers a far more modest plan will be sufficient to meet their needs.  And, it will be far more reasonable.”

The long term care insurance expert noted that many agents only sell one or two long term care insurance policies a year.   “Many of the insurers now offer some really consumer-friendly benefit options such as the ability to buy more coverage in the future without having to meet health requirements,” Slome shares.  “An off-the-shelf approach speeds up the sales process but isn’t always in the customer’s best interest.”

Newest Long Term Care Insurance Policies Offer Consumer Friendly Features

Some of the newly introduced long-term care insurance policies offer features and options that provide significant benefit and potential cost savings for consumers.

“Long-term care insurance policies continue to add consumer friendly features that benefit individuals,” declares Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).   ”The new options and choices give consumers greater choice and flexibility as well as more affordable options to meet different budgets and lifestyles.”

“Our newest policy was designed with the claimant in mind and will provide advanced payment for facility care and a cash benefit for hospice care, two valuable benefits new to the long-term care insurance market,” reports Bill Naylon, President of MedAmerica Insurance Company a leading provider of long-term care insurance protection.  MedAmerica announced plans to roll out its newest policy offering new benefit features later this year.

“Innovative long-term care insurance benefits like these mean policyholders won’t have to always advance money for care and wait to be reimbursed, especially at a time when families have many other stressful financial issues to address,” cites Slome.  “Thanks to continual policy improvements, the many new and improved long-term care insurance policies sold today are nothing like the policies sold 10 and 20 years ago.”

Some of the newer policies offer greater flexibility when selecting present and future benefit amounts, as well as cost-reducing options.  “Smart investors periodically review their investments and adjust when it makes sense,” Slome shares.  “Some of today’s newer long-term care insurance policies also offer flexible planning options that are worth looking at.”   The best time to explore your options is when in your 50s and 60s.

Policy provisions and pricing can vary significantly from one insurance carrier to the next.  According to AALTCI’s 2015 Long-Term Care Insurance Price Index, costs for comparable coverage can vary by as much as 120 percent.  “Your benefits are governed by the policy, which can be up to 50 pages long, and that’s what makes it so important to work with a long-term care insurance professional who stays abreast of the latest policy innovations and changes,” Slome suggests.

2015 Long Term Care Insurance Forecast Shared

Single digit growth in long term care insurance sales along with heightened interest in asset-based products is forecast for 2015 according to the American Association for Long-Term Care Insurance.

“We expect to see sales of traditional long term care insurance grow both in terms of policies and premium written,” predicts Jesse Slome, executive director of the American Association for Long Term Care Insurance (AALTCI).   ”The growth should be in the three to five percent range for policy sales and roughly eight to 10 percent for new premium overall for 2015.”

The forecast should be welcome news for many of the nation’s long term care insurers who have experienced double digit sales declines in 2014.  “Sales would be larger if more insurance professionals re-entered the long term care insurance marketplace,” Slome admits.   “I don’t see that happening over the short term in 2015 but it is good to see some major insurers are investing heavily in trying to rebuild distribution for the product.”

The Association forecast predicts continued growth of hybrid or asset-based long term care insurance products.  “These products are much harder to track and report as more life insurance companies add a long term care benefits option to their life insurance contracts,” Slome notes.  “If adding a benefit like LTC gains traction for life insurance sales, then considering the number of life insurance agents, we expect many more Americans will have some form of long term care protection in place at the end of 2015.”

Slome noted issues facing the traditional long term care insurance industry continue to pose a threat to future growth.  “We are seeing more consumers frustrated with the claims payment process who are turning to the media as part of the resolution-seeking process,” Slome acknowledged.  “Today, it only takes a few negative stories that go viral to impact any goodwill the industry has built-up.  That continues to be a worrisome condition.”

$7.8 Billion in Long Term Care Insurance Claim Benefits Makes National News

The American Association for Long Term Care Insurance reported today that the nation’s long term care insurance companies paid a record $7.85 billion in claim benefits to 250,000 individuals in 2014 according to a just-released report.

“Total long term care insurance benefit payments increased by five percent from $7.5 Billion paid the prior year,” reports Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI), the national trade group.   The organization reported that insurers paid $6.6 billion to some 264,000 policyholders in 2012.

“Americans are living longer and the consequence is more people needing long term care,” Slome explains.   ”Contrary to what most people think, the vast majority of long term care insurance pays for care in the home or in assisted living communities, not in skilled nursing homes.”  According to AALTCI research, half of all newly opened long term care insurance claims paid for care in the home.  “Consider long term care insurance as nursing home avoidance protection,” Slome adds.

The following are links to a number of major media reporting the news.

Yahoo Business
http://finance.yahoo.com/news/long-term-care-insurance-industry-151800610.html 

Boston, Boston Globe
http://finance.boston.com/boston/news/read/29335492/Long_Term_Care_Insurance_Industry_Paid_$7.8_Billion_in_Claim_Benefits_ 

Arizona Republic
http://finance.azcentral.com/azcentral/news/read/29335492/long_term_care_insurance_industry_paid_$7.8_billion_in_claim_benefits 

Minneapolis Star Tribune
http://markets.financialcontent.com/startribune/news/read/29335492/Long_Term_Care_Insurance_Industry_Paid_$7.8_Billion_in_Claim_Benefits_ 

Buffalo News
http://markets.financialcontent.com/startribune/news/read/29335492/Long_Term_Care_Insurance_Industry_Paid_$7.8_Billion_in_Claim_Benefits_ 

San Jose Mercury News
http://markets.financialcontent.com/mng-ba.mercurynews/news/read?GUID=29335492 

MarketPlace, National Public Radio
http://ndwebfiles.marketwire.com/NDWebFiles3/content/2015/2/24/1177062//cache/131110516.htm