Long-Term Care Insurance

Insurance carriers are starting to see the trends in Long-Term Care Insurance (LTCi). Stand alone policies have dropped off in sales the last few years, but more and more life insurance policies are becoming "hybrid" in nature. Some policies now include a long-term care part into life insurance products to give your clients stronger and better options for an unforeseen life event.

Long-Term Care Insurance

Insurance carriers are starting to see the trends in Long-Term Care Insurance (LTCi). Stand alone policies have dropped off in sales the last few years, but more and more life insurance policies are becoming "hybrid" in nature. Some policies now include a long-term care part into life insurance products to give your clients stronger and better options for an unforeseen life event.

Long-Term Care Insurance (LTCi) Trends

According to Life Happens, the national median cost for a home health aide for an eight-hour day is approximately $54,912 annually. An assisted living facility in the U.S. has a median cost of roughly $51,600. Of course, these numbers change based on where your clients live (you can find the estimated costs by clicking here).

Below are a few examples based on some different locations provided by Life Happens.

  • California: $64,064 per year for Home Health Care; $127,750 per year for a nursing home.
  • Minnesota: $69,784 per year for Home Health Care; $132,448 per year for a nursing home.
  • Florida: $50,336 per year for Home Health Care; $112,639 per year for a nursing home.

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.
  • 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.


Facts/Trends About Long-Term Care Insurance (LTCi)

  • The U.S. Department of Health and Human Services reports that 69% of people will use long-term care services at some point.
  • Care does not come cheap: Long-term care costs range from $19,500 per year for adult day care to $102,200 per year for a private room in a nursing home. (Genworth Cost of Care Survey 2019)
  • Did you know… 66% of Americans say most people need long-term care insurance? However, only 18% say they own it. (2020 Insurance Barometer Study by Life Happens and LIMRA)
  • This need-gap is up 8% from a year ago and suggests an active market demand from 110 million consumers. (2020 Insurance Barometer Study by Life Happens and LIMRA)
  • The study found a long-term care purchase intent from 24% of non-owners, with LIMRA’s long-term care data suggesting a potential market of 50 million Americans. (2020 Insurance Barometer Study by Life Happens and LIMRA)

Contact us at chrish@aipma.com or give us a call (800) 783-5206

Is Your Agency Selling Long-Term Care Insurance Products?

Why not? By adding a new product line, your agents can see how cross-selling to current clients also can attract prospects. AIPMA will work with you and your agents to get them contracted to sell Long-Term Care Insurance. Simply click the button to the right to schedule a conversation with our Vice President of Business Development, Chris Howe.

Contact Us

800.783.5206

2041 E. Square Lake Road, Suite 100, Troy, Michigan 48085-3897

About Us

For more than 40 years, AIP Marketing Alliance (AIPMA) serves as a premier life insurance and annuity distribution partner to provide full-service support to independent wholesalers, brokerages and agents from our Troy, Michigan office. Copyright 2021