Los Angeles, CA, February 19, 2021 --(PR.com
)-- One out of two individuals who purchase long-term care insurance at age 65 will actually utilize their coverage according to data released by the American Association for Long-Term Care Insurance (AALTCI).
"It's a 50-50 probability that someone getting long-term care insurance at age 65 will use their coverage and that's a significant piece of information few consumers understand," explains Jesse Slome, director of the long-term care insurance organization.
The organization worked with leading industry actuaries to review data. "We specifically looked at risks based on coverage that had a zero-day elimination period," Slome adds. "Today, many policies have provisions or options that include access to immediate benefits for home care needs. And, since the vast majority of long-term care insurance benefits today pay for care at home, this made the most sense."
The Association director acknowledged the likelihood of usage was less when a 90-day Elimination Period (EP) was used to factor risk. "Many people choose a 90-day EP specific to when benefits for skilled nursing home care would apply and that makes sense because Medicare covers some of that risk," Slome notes.
"Does having some long-term care insurance make financial sense?" Slome queries. "We insure our homes even though we know the risk of a house fire is far less than 50-50. The risk of needing care as we age is significantly high, and thus the answer is yes, having some protection in place makes prudent financial sense."
The 50-50 usage projection assumes the individual purchases long-term care insurance at age 65 and maintains the policy until either they need benefits or die. The Association recently posted their 2021 long-term care insurance price index and other statistics and data on it'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.