Today we take a closer look at the latest Long-Term Care Insurance Price Index analysis from The American Association for Long-Term Care Insurance (AALTCI).
AALTCI points to the possibility that low interest rates and other factors may be making new, stand-alone long-term care insurance policies and those that combine long-term care benefits with life insurance more expensive this year. According to AALTCI’s Director Jesse Slome, “Covid and the changing economic environment calls for consumers to take a different approach to their long-term care insurance planning.” But the organization says delaying the purchase of long-term care insurance can be costly given that age and health begin to factor in more when consumers apply for coverage.
The organization provides real examples of policies with various levels of future benefit growth, looking at data for issue ages 55, 60, 65 and 70. The new index shows the price increase effect of waiting 5 years, 10 years, 15 and 20 years.
Read more about Association’s 2021 analysis.