A significant number of individuals who have recently purchased long term care insurance protection pay less than $1,499 per year, according to a report released this week by the American Association for Long-Term Care Insurance.
Overall, 35.4 percent of new buyers pay less than $1,499 annually, while among buyers under age 61, 43.5 percent pay less than that amount. On the other hand, 73.6 percent of buyers between the ages of 61 and 75 pay $1,500 or more annually.
According to AALTCI's executive director, Jesse Slome, "Individuals mistakenly have been led to believe that long term care insurance costs thousands of dollars. A significant number of individuals today pay between $10 and $20 a week. That's a highly affordable way to protect $150,000 to $250,000 of future care."
Meanwhile, among buyers under age 61, 28.1 percent paid less than $999 per year, while just 9.3 percent pay $3,500 or more annually.
Finally, the study notes the importance of age at the time of application in determining the cost for long term care insurance. For example, while 41.5 percent of buyers under age 61 pay between $500 and $1,499 per year, just 20.8 percent of buyers between the ages of 61 and 75 pay within that same range.