What is Long-Term Care Insurance?

Long-Term Care Insurance provides an insurance policy to help cover the cost of assistance needed with daily living if your client is unable to care for himself/herself for an extended period due to a chronic illness or disability. These healthcare costs typically are not covered by healthcare insurance or Medicare plans, which means your clients could have to use their retirement assets (annuities, 401K, savings) for these expenses.

Your clients have these options for professional care: home health care; assisted living facility; memory loss units; nursing home; and adult day care. However, a LTCi policy does not pay benefits (or for care) unless one of following two criteria are met:

• The person is unable to perform two of the six activities of daily living without assistance or supervision. These activities are continence, dressing, toileting, eating, bathing and transference.
• The person has a severe cognitive impairment (Alzheimer’s, dementia, etc.) that creates an inability for him/her to live independently and safely.

Each client’s situation is different. AIPMA has an experienced Business Development team to discuss product differences, answer questions, and generate illustrations to help you show long-term care insurance product options to your clients. Contact our Business Development Team at (800) 783-5206, Prompt 2 or marketing@aipma.com.

AIPMA Resources

• Website/Portal: Supported by AIPMA’s myAIP CRM, wholesalers can customize a website portal to provide secure access to AIPMA’s hybrid life insurance quote tools and resources to include long-term care.
• LTCi Spreadsheet: AIPMA has reviewed our contracted carriers’ products and developed a comparison spreadsheet with products, issue ages, monthly benefit amount, elimination period, coverage for assisted living facility/home healthcare, premium guarantee, and states approved.
• LTCi in a Box: This whitepaper and marketing kit provides wholesalers and agents an understanding of LTCi, how to sell LTCi to consumers, and some social media and email marketing resources to promote LTCi.
• One of AIPMA’s contracted Long-Term Care Insurance carriers, Mutual of Omaha, also has created The Cost of Long-Term Care Services to help you discuss LTCi with your clients. The Cost-of-Care Study is based on data collected by Long-Term Care Group (LTCG), a leading provider of long-term care data. Each year, LTCG examines the cost of a variety of long-term care services, including those received at home, in an assisted living facility and in a nursing home for each state.

Since The Cost of Long-Term Care Services document is for producers only, please contact AIPMA’s Business Development team at (800) 783.5206 or marketing@aipma.com to request a copy of this document.

Long-Term Care Insurance (LTCi) Statistics

• Overall, 74% of consumers think they are likely to need LTC in the future, and nearly two-thirds (64%) say LTC planning is a priority — but only 33% are confident in their plans. (Source: 2024 Long-Term Care Consumer Study, OneAmerica Financial)
• Younger consumers (ages 40 – 49) prioritize LTC planning (75%) and are confident in their current plan (55%); by contrast, only 17% of older consumers (ages 60+) express confidence in their plan. (Source: 2024 Long-Term Care Consumer Study, OneAmerica Financial)
• Many consumers want support (44%) when selecting LTC coverage, with 31% citing a lack of information about their options as a barrier to buying. (Source: 2024 Long-Term Care Consumer Study, OneAmerica Financial)
• The U.S. Department of Health and Human Services reports that someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years.
• Care does not come cheap: Long-term care costs range from $25,441 per year for adult day care to $120,304 per year for a private room in a nursing home. (2024 Genworth Cost of Care Survey)
• 20% of today's 65-year-olds will need long-term care for longer than five years. (U.S. Department of Health and Human Services)
• How much care will your client need? Women need care longer (3.7 years) than men (2.2 years). (U.S. Department of Health and Human Services)