Cost of Long Term Care Insurance Gets Worse

The American Association for Long Term Care Insurance reported that the prices of policies sold by the 10 of the country’s biggest insures have increased by 17 percent than last year’s rate. AALTCI’s executive director, Jesse Slome, said “Insurance prices have increased as a result of the historic low interest rates and yields on fixed income investments.”

 

 

AALTCI made a thorough study on consumer’s choice in purchasing from the available among the top 10 LTCi policies. The results show the average cost for a 55-year old single individual who qualified for preferred health discounts is $1,720 for between $165,000 and $200,000 of current coverage.  In 2011, a person would incur $1,480 yearly using the same coverage. The study reveals the gap between the lowest and highest cost of policy had stretched compared to last year.

 

The association also look at the policy prices among 55-year old single individuals and couples age 55,60, and 65. A 60-year old couple with the same benefits of $340,000 could pay around $3,335 annually, provided that the couples have qualified for health discounts.

 

Slome stressed that the policies are “properly” price, but agreed they are “expensive.” There are around eight million people with LTC, according to the AALTCI.