Hybrid Long-Term Care Price Index Released

A 55-year-old male can expect to pay between $5,200 and $6,100 annually for a typical hybrid long-term care insurance policy according to the American Association for Long-Term Care Insurance (AALTCI). A woman, also age 55 will pay between $1,000 and $2,000 more.

"Hybrid or linked-benefit long-term care policies are growing in popularity but there can be significant differences in price and future benefit values," explains Jesse Slome, director of the long-term care insurance advocacy organization.

The first price and benefit comparison conducted by the organization looked at costs and benefits for men and women at ages 55 and 65. "This is the ideal age range to consider this protection because costs will be lower and, more importantly, one still needs to meet health qualifications in order to be accepted for this protection," Slome explains. The analysis reports costs and potential benefits for those purchasing basic levels of coverage consisting of an initial benefit of $4,000-per-month. The benefit will grow at 3 percent compounded annually.

"This formula will yield a potential long-term care benefit of $9,700-per-month at age 85 and a benefit of $11,250 monthly starting at age 90. According to the 2022 Hybrid Long-Term Care Price Index, a male in good health could pay as little as $5,235 annually for coverage if purchasing coverage at age 55 according to the industry analysis. Waiting a decade to apply meant the lowest available annual cost would be $7,223.

"Women pay more for equal amounts of hybrid long-term care insurance protection," Slome notes. "This is the same as with traditional long-term care insurance where roughly two-thirds of benefits are paid out as a result of care needs by female policyholders." The full report can be accessed at https://www.aaltci.org/linked-benefit-price-index-2022/.

The analysis of hybrid long-term care policies found the lowest premium for a female policyholder at age 55 is $7,138. At age 65, the lowest was $10,301 annually.

In addition to price differences, the analysis revealed a difference in available future benefits. For both men and women purchasing at age 55, the maximum available long-term care benefit starting at age 85 ranged from $482,400 to $560,796.

"Life insurance benefits varied as well," Slome notes. "A male buying hybrid LTC age 65 could benefit from a death benefit at age 100 of $100,000 or as much as $384,523, the maximum amount found by the analysis.

AALTCI
32504 Carrie Place
Westlake Village, CA 91361

Jesse Slome is director of the American Association for Long-Term Care Insurance as well as the American Association for Medicare Supplement Insurance. Both organizations advocate for the importance of planning and undertake research of benefit to consumers as well as insurance professionals. To learn more, visit their websites at https://www.aaltci.org or https://www.medicaresupp.org.

This release was published on openPR.