LTC Insurance Benefits Paid Top $3 Billion Mark

"So many of these policies were bought 7 to 10 years ago, when home-care benefits were not as common, or where they were bought, they paid only 50% of the allowed nursing-home benefits," Slome said.

The fact that about a third of benefits were allocated to nursing homes and the remainder to home care or assisted living "is dramatic indication people want and use these policies to receive care at home, even if they have terribly debilitating conditions like Alzheimer's," he said. "One of the most significant benefits of owning long term care coverage is the fact that it can pay for care received in your own home, which is what people clearly prefer," Slome explains.

The increasing amount of benefits paid out proves LTC protection is important, Slome said.

The largest single claim reported by an insurer was over $875,000, he noted.

"Some of these individuals are still receiving long term care, so the total value of the protection they've received will continue to grow."