Costs for linked benefit long-term care insurance coverage are lower than a year ago according to the 2024 Long-Term Care Insurance Price Index released today by the American Association for Long-Term Care Insurance.
“Great news for aging individuals who are thinking about their risk of needing care one day,” states Jesse Slome, director of the long-term care insurance organization. The 2024 Long-Term Care Insurance Price Index is the organization’s annual compilation of costs for both traditional and linked benefit long-term care insurance.
”Interest rates are significantly higher than a year ago and that has enabled some insurers to reprice their products,” Slome explains. “Someone applying for new coverage in 2024 can obtain more coverage for less cost than basically the identical coverage purchased a year ago.”
According to the 2024 Price Index, a single 55-year-old male purchasing coverage that would provide around $520,000 of potential long-term care benefits at age 90 could expect to pay $5,022 in annual premiums. The same coverage would have cost $5,600 according to the Association’s 2023 LTC Price Index. Access the 2024 long-term care insurance data at https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2023.php.
“Savings were higher for women according to our analysis and those who paid for coverage with a single lump sum would enjoy greater savings this year,” Slome added.
“There are more insurers offering various types of linked benefit products that combine life insurance with the potential for long-term care benefits,” Slome explained. “There are significant differences between many of these products and going on price alone or just a single recommendation from your financial representative isn’t always the best course of action.”
The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of planning and supports insurance professionals who market both traditional and hybrid LTC solutions. To learn more or to connect with linked-benefit long-term care insurance specialists visit the organization’s website at https://www.aaltci.org or call 818-597-3227.
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