Younger Long Term Care Insurance Claimants Examined
LOS ANGELES, Sept. 5, 2012 /PRNewswire/ — A new study dispels the misperception that long term care insurance is purchased by and benefits only older individuals who need care as a result of conditions typically associated with aging.
According to a just-released American Association for Long-Term Care Insurance study, the youngest claimant was 24-years-old when he began receiving benefit payments from his long term care insurance policy. The coverage was purchased at age 21 and the individual has been receiving payments for seven years.
“People often mistakenly associate long term care solely with nursing home care required by the elderly,” explains Jesse Slome, AALTCI’s director. “After purchasing insurance coverage younger individuals have accidents and are diagnosed with health conditions that result in the need for care for months and often years.”
The Association reviewed data shared by leading long term care insurance companies. The youngest female policyholder on claim obtained coverage at age 28. “Within the same year, she needed care and qualified for benefit payments that have amounted to over $135,000,” Slome reports. A number of insurers reported younger claimants in their 30s. “A male who purchased insurance at age 36 began receiving policy benefits at age 40,” Slome notes. “His claim has lasted over six and a half years and the insurer has already paid out over $700,000.”
The long term care insurance industry paid $6.6 billion in 2011 claim benefits to over 200,000 individuals according to the 2012 Long Term Care Insurance Sourcebook. “The number of younger individuals purchasing long term care insurance on an individual basis and through their employer is growing,” says Tim Kneeland, President, Transamerica Life Insurance Company, a leading Long Term Care insurer. A policy that provides for $164,000 in immediate benefits with the option to increase overage in future years costs roughly $635 yearly for a 25 year old according to the Association’s 2012 Price Index. For information visit the Long Term Care Insurance Association’s website or call (818) 597-3227.
About American Association for Long-Term Care Insurances
Established in 1998, AALTCI is the national trade organization established to create awareness regarding the importance of planning for long term care. To read free consumer guides outlining ways to reduce long term care insurance costs visit the Association’s website.
SOURCE American Association for Long-Term Care Insurance