AALTCI predicts strong year

Sales of long term care insurance must grow if there is any chance to keep federal programs like Medicare solvent and if baby boomers expect to receive quality long term care. A surge in sales has not manifested itself, meaning LTCI salespeople are competing amongst themselves for fewer prospects. But at least one industry expert sees a reason to celebrate in 2007.

Jesse Slome, executive director of the American Association for Long-Term Care Insurance, predicts LTCI sales will grow by 15 percent this year. He bases part of his prediction on the fact that the larger companies that account for most of the sales are growing the most.

Another part of the prediction is based on what he calls the "parrot effect." Some 8 million Americans now own some form of LTC protection, and it is human nature for people to mimic the behavior of others. So as more policies are sold, more people are going to buy. Also, benefits paid in 2006 reached $3.3 billion, according to AALTCI data. As Slome says, that's a lot of people receiving checks for their care and a lot of people talking about the checks they received to cover their care.