More than half of Americans purchasing long-term care insurance paid less than $20 a week according to a new report by the American Association for Long-Term Care Insurance, the industry trade group.
According to an analysis of over 100,000 policies sold during the first half of 2009, the majority of individuals age 61 and younger paid under $1,000 a year for protection (less than $20 a week). Just over half (51.3%) of long-term care insurance policies sold to individuals in Partnership states cost under $1,000 a year. Nearly one in five cost less than $500 a year.
"Most people mistakenly believe long-term care insurance is expensive," states Jesse Slome, executive director of the organization. "The cost depends on how much coverage you buy, your age and health when you apply." Less than 10 percent of purchasers spent more than $100 a month for new policies purchased.The majority of those purchasing Partnership long-term care insurance policies were between ages 46 and 60.
The Partnership is a program authorized by Congress that makes available long-term care insurance protection from leading insurers. Partnership-approved policies provide special features and asset spend-down protections. Some 30 states now have long-term care Partnership programs in place.
Nearly half (48.2%) of buyers purchasing Partnership long-term care insurance policies in the first half of 2009 were between the ages of 46 and 60. Some 31 percent were over age 60 and nearly 20 percent were age 45 or younger.