Advisors hoping to illustrate the benefits and, at the same time, understand the significant generational costs associated with LTCI, may be interested in a new study released by the American Association for Long-Term Care Insurance.
According to the organization, the largest open LTCI claim recently surpassed $1.2 million in benefits, providing coverage to a claimant who is not even of retirement age. The female claimant, who purchased coverage at age 43 and paid an annual premium of $1,800, began her claim three years later and has been under full coverage for nearly 12 years since.
"As a result of increased longevity and medical advances, the need for long term care is a new phenomenon for a generation of Americans," says Jesse Slome, AALTCI's executive director. "LTCI is not the lottery. This is not something you really want to win, but having protection in place can certainly pay off … and for thousands of people it increasingly is."
