Los Angeles, CA, January 14, 2021 --(PR.com
)-- The latest annual price index for long-term care insurance for purchase at age 55 was released by the American Association for Long-Term Care Insurance (AALTCI).
"Covid and the changing economic environment calls for consumers to take a different approach to their long-term care insurance planning," states Jesse Slome, director of the long-term care insurance organization. "For 2021 we are reporting premium prices for a range of benefit increase options."
Long-term care insurance policies offer consumers the option of increasing the value of their protection. "Years ago, the majority of people purchased an option that increased their benefits by five percent yearly," Slome explains. "As interest rates dropped, this became an expensive option and more consumer started to favor the three percent growth option. However, this too can be costly in today's historic low interest rate climate."
According to the 2021 Long-Term Care Insurance Price Index, a 55-year-old couple each purchasing an initial benefit of $165,000 could expect to pay $2,080 combined for their insurance policies.
"Adding the three percent benefit increase option more than doubles what the couple will pay each year," Slome notes. The 2021 pricing report found that coverage with the three percent benefit increase option would cost $5,025 annually. Adding the five percent option would cost the couple $8,575 per-year.
Slome acknowledged that having some future growth of available benefits is of potential value to consumers. "More is always going to be better but it is a balancing act where cost plays a major factor in the buying decision," Slome says. "Having some coverage is always a better plan than having none and waiting to see what the future holds puts someone at risk of facing higher premiums or the risk of being uninsurable due to health reasons."
The long-term care insurance professional noted that consumers could benefit by considering various future inflation growth options. "You might find that a one or two percent option is not just suitable by certainly offers some significant premium savings," Slome concludes.
The Association posts 2021 long-term care insurance statistics and data on it's website. The 2021 price index is now available.
Headquartered in Los Angeles, 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. Request long-term care insurance costs by calling the organization at 818-597-3227 or visit their website at www.aaltci.org.