Long-Term Care Insurance Claim Payments to Quadruple According to AALTCI

Los Angeles, CA, August 05, 2013 --(PR.com)-- The nation's long term care insurance companies are expected to pay $15 Billion annually to policyholders a decade from now and more than twice that amount in 2032 when today's 60 year olds reach their 80s.

"Long term care insurance plays an increasingly important role paying for care needs and protecting retirement plans," declares Jesse Slome, executive director of the American Association for Long Term Care Insurance (AALTCI). The organization released industry claim projections today based on analysis by leading independent actuarial experts.

In 2012, long-term care insurers paid $6.6 Billion in claim payments to some 264,000 individuals according to AALTCI. "By 2032 insurers are expected to pay $34 Billion-a-year in benefits a 415 percent increase," Slome reports. "The quadrupling in benefit payments is the result of aging of policyholders, policy value increases and the continued growth of individuals purchasing protection," Slome explains. "State regulations require insurance companies set aside significant reserves ensuring that today's insurers are prepared to pay increasing claim costs in the future."

The Association study focused on traditional long-term care insurance policies purchased by individuals or offered to employees at the worksite. "Billions more in yearly long-term care benefits will be paid to the growing number of people who are purchasing hybrid products including life insurance policies that offer long term care benefit riders," Slome adds.

The Association reports that roughly eight million Americans currently have some form of long-term care insurance protection. Over 320,000 individuals purchased new coverage in 2012, an increase over 2011, according to the 2014 Long-Term Care Insurance Sourcebook published by AALTCI.