Five interesting facts from the 2015-2016 AALTCI Sourcebook

Each year the American Association for Long-Term Care Insurance (www.aaltci.org) produces their Sourcebook full of facts about LTC Insurance and LTC planning.

The Sourcebook is free for association members or can be ordered by calling 818-597-3227

Here are five of the more interesting findings:All data from the American Association for Long-Term Care Insurance, 2015 LTCi Sourcebook

According to the Source book, for the past 6 years the average increase in case costs has been as follows:

Home Health Care: 1% annually Assisted Living Residences: 2.3%

annually Nursing Homes Private Room 2%

annually

1. The annual increase in LTC costs is surprisingly low

All data from the American Association for Long-Term Care Insurance, 2015 LTCi Sourcebook

With the low care inflation, 85 percent of policies are now sold with 3% or less inflation protection – a dramatic change in just a few years.

In fact, if 5% compound inflation wasn’t required by law to be offered, it probably wouldn’t be.

2. Less than 15% of LTC polices are sold with 5% compound inflation rider

All data from the American Association for Long-Term Care Insurance, 2015 LTCi Sourcebook

The odds of one spouse of a 65 year old couple living to age 90 is almost 45%.

43% of affluent 65 year olds will have a spouse live to age 95!

3. People live longer than they think – and wealthier people live even longer

All data from the American Association for Long-Term Care Insurance, 2015 LTCi Sourcebook

Almost 50% of 85 year olds have some type of disability. Although people are living longer, LTC claims data shows that the longer someone lives the more likely they will need to use their LTC Insurance benefits

4. If you do live to be age 85, there is a high chance of being disabled

All data from the American Association for Long-Term Care Insurance, 2015 LTCi Sourcebook

Despite fears from regulators that premium rate increases would force people to drop their coverage, that hasn’t happened. People who have a LTC Insurance policy will maintain coverage because they understand the value.

5. The number of individual long-term care insurance policyholders grew in 2014

All data from the American Association for Long-Term Care Insurance, 2015 LTCi Sourcebook

The AALTCI is hosting 2015 Summitt in Washington D.C. on October 27th, 2015. For those who can’t make the meeting in person, it will be streamed for free.

Visit www.insuranceexpos.com/ltcip for more information.

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