Term Care Insurance Pricing Set To Take Effect

Los Angeles, CA – Leading insurers that offer long term care insurance to individuals are busy repricing and filing products that will charge women more than men.

“The long term care insurance industry now has enough data that shows that women have a far greater chance of using their coverage and sex-distinct pricing makes logical sense,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance and a leading long term care insurance expert. “Until now, insurers have used unisex pricing which means that women pay the same as men even though their utilization of coverage is much higher than men.”

According to research by the trade group, women make up roughly two thirds of all new requests for benefits. “About two thirds of benefits paid are paid for claims made by women,” Slome notes. In 2012 the long term care insurance industry will have paid out a projected $7 billion in benefits. “As the amount of claims paid continues to grow each year, the need to charge appropriate rates linked to real risk is vital to making sure adequate funds are available to pay future claims,” Slome explains.

Gender-based pricing is common for other insurance products. For long-term care insurance, Slome’s early analysis of early product filings finds that women will pay between 20-and-40 percent more than men. “There are many variables that go into pricing long term care insurance,” Slome shares. “But one thing is for sure, women currently have a closing window of opportunity to take advantage of the current unisex pricing.”

Slome advises women over age 55 to obtaining pricing for coverage. “This is especially important for women who are living alone because they are single, divorced or widowed,” Slome says. “They not only have an opportunity to save but they typically don’t have family members who can provide free care should a need for long term care arise.”

The gender-based pricing will also impact married women according to AALTCI. “Couples have a final opportunity to lock in these rates and because of the restrictions on rate increases imposed by states,” Slome says. Rate increases for long term care insurance can only be requested when significant changes to pricing assumptions occur experts note.

The American Association for Long Term Care Insurance was established in 1998 as a non-profit trade group. The Los Angeles California-based advocates for the importance of planning for long term care and supports insurance and financial professionals who market LTC insurance.

$12 BILLION ANNUALLY. . .

That's the estimated productivity lost by employers because of their employees' care-giving responsibilities. The average time family caregivers spend on long term care is 18 hours a week. This time is often taken from the employer's most productive business hours.

$83,000 A YEAR. . .

That's the average cost of a semi-private room in a nursing home in the New York metropolitan area. A home health care aid costs about $18 per hour. Roughly 1 out of 4 households provides unpaid care to a relative or friend over age 50, and cost is a primary reason.

$0. . .

That's the cost of long term care services generally covered by health insurance and Medicare. Medicaid typically covers most long term care, but first you must spend down much of your assets and become indigent.

PRICELESS. . .

That's the value of your peace of mind when you purchase long term care insurance for yourself or a loved one. Discounts apply if you and your spouse both buy a policy at the same time. You can even buy a policy for mom and dad!

Long term care insurance helps you to pay for help with day- to- day living, such as assistance with bathing, dressing, eating and other activities that we normally take for granted. You may receive care either in a nursing home or in your own home.

For more information, take our "Long Term Care Quiz", learn "Long Term Care Facts and Myths" and find out if "Could This Be You?".

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