Los Angeles, CA, July 18, 2012 --(PR.com
)-- A new study of individuals buying long term care insurance revealed that nearly 40 percent who were age 61 or less paid less than $1,499 per-year for their coverage according to the report.
“One of the biggest misconceptions is that long term care insurance is costly, a result of some well meaning national studies that report national industry averages,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance. The head of the national trade organization recently addressed consumers providing tips on shopping for LTC insurance protection.
“The cost for this insurance coverage is based on your age when you apply so averages that include costs for those in their 70s are not relevant to younger buyers,” Slome stated. “The only way to get a relevant number is to request comparison quotes for your specific age and health.”
According to industry data nearly four in 10 buyers (39.7%) under the age of 61 paid $1,499 or less in premium for their long-term care insurance coverage during 2011. “Some 17 percent paid less than $1,000 a year, which is less than $20 per week,” Slome noted. “Considering that some insureds have received hundreds of thousands of dollars in benefit payments from long term care claims, this really can be a very financially smart move.”
While the majority of buyers according to the report paid lower amounts, some 16.7 percent paid more than $3,000 a year for coverage. “One thing the averages never tell you is the significant spread among prices between insurers,” Slome acknowledged. “Virtually identical coverage from one insurer can cost almost twice as that from another insurer and if you don’t compare you run the risk of paying more than you need to.”
“If you are considering long term care insurance, it can save you significant dollars by working with an independent professional and asking for a free cost and benefits comparison,” Slome added to the group of consumers.
Ask the insurance professional whether he or she has access to policies from only one insurer or if they can offer you options from the four or five leading insurers. “Ask how many long term care insurance policies they sell a year, too,” Slome concluded. “The price is important – but understanding the small print will be even more important come claim time and typically working with a knowledgeable specialist will be to your advantage.”
For additional information or to find a long-term care insurance professional call the Association at (818) 597-3227 or visit their website to access free online consumer information guides.