Los Angeles, CA, January 16, 2021 --(PR.com
)-- There continues to be a significant spread in pricing for long-term care insurance according to the 2021 annual price index released by the American Association for Long-Term Care Insurance (AALTCI).
“The costs for virtually identical coverage can be significant,” states Jesse Slome, director of the long-term care insurance organization. The organization just released pricing for 65-year olds examining costs for single men, single women and couples where both parties obtain the coverage.
"A 65-year old couple can pay 46 percent more based on which company they select," Slome notes. "The spread between the lowest priced and highest priced policy compared by the organization was as high as 84 percent for a 65-year-old woman."
The organization analysis reported expected costs for various policy options. "This year we especially looked at the inflation growth option which can literally double or even triple the base cost of this insurance policy," Slome explains. The organization provides real examples of policies with various levels of future benefit growth.
According to Slome, traditional long-term care insurance policies offer consumers the option of increasing the value of their protection. ”Years ago, many selected the option that increased their benefits by five percent yearly,” the long-term care insurance expert notes. “More recently consumers started to favor the three percent formula. However, this too can be costly in today’s historic low interest rate climate.”
The 2021 Long-Term Care Insurance Price Index reports that a 65-year-old couple each purchasing an initial benefit of $165,000 could expect to pay $3,750 combined for their insurance policies.
“If the couple chooses to add a three percent benefit increase option, their yearly cost more than doubles,” Slome reports. The 2021 pricing report found that coverage with the three percent benefit increase option would cost $7,150 annually. Selecting the five percent option would cost the couple $9,675 combined per-year.
Considering various future inflation growth options can benefit consumers suggests AALTCI. "Working with a knowledgeable long-term care insurance specialist can be highly beneficial in terms of knowledge and savings potential," suggests Slome. To view 2021 long-term care insurance prices and statistics and data visit the organization's website.
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.