As the industry celebrates Long-Term Care Awareness this month, many agents and advisors will be pleased to learn that sales of long-term-care insurance policies are expected to increase next year. “We expect 300,000 Americans will purchase a new traditional long-term care insurance policy or a combo product in 2015," predicts Jesse Slome, executive director of the American Association for Long-Term Care Insurance <http://www.aaltci.org/ (AALTCI). "The maximum potential benefit value for just 2015 new sales will equate to about $5 billion in future benefit payments for home care services."
Some eight million Americans currently possess some form of LTCI, and while sales of traditional LTCI products have declined in recent years, Slome notes that sales of life insurance and annuity policies that offer LTC benefits are increasing. "For the first time, we project annual sales of the newer options will equal, and quite possibly surpass, sales of traditional long-term care insurance policies."
The association estimates that the total maximum potential benefit value to all current holders of LTCI policies will approach $2 trillion (2014 dollars). The nation's insurers paid out $7.5 billion in benefits in 2013, according to an AALTCI report. "By 2032, insurers expect to pay out in excess of $34 billion as today's 60-year old policyholders reach their 80s," Slome notes.
Home health-care providers and agencies will be among the leading beneficiaries, according to AALTCI analysis. "Of the billions paid out each year, nearly 30 percent currently pay for home-care services," Slome notes. "That percentage will grow significantly in the years ahead." The most recent association analysis found that 51 percent of all newly opened claims in 2013 paid for home-care services.
"The number of Americans requiring help with daily living at home is expected to more than double from the current 12 million to 27 million by 2050," explains Margaret Haynes, Chief Operating Officer of Right at Home, an international franchise organization.
"People want to remain in their own home when care is needed," Slome adds. "As millions of Americans live into their 70s, 80s and beyond, long-term care policies will enable millions to receive the care they need in the setting they prefer."
For additional information, contact Jesse Slome at 818-597-3227 or at email@example.com.
By Ayo Mseka