LTCI claimants: The latest on who's filing

By Paul Wilson

ProducersWEB


Women accounted for 65 percent of new LTCI claims opened last year, while nearly one-quarter of new claims were filed by people in their 70s.

A brand new report from the American Association for Long-Term Care Insurance provides LTCI advisors with a look at claims trends in the industry as well as important insight into exactly what the average LTCI claimant looks like.

The amount of long-term care insurance claim benefits paid last year in the U.S. rose 8 percent from the previous year to $6.6 billion, according to the report.

Who were the claimants?

Claims benefits were paid to more than 200,000 individuals. But who were these claimants?

Women accounted for 65 percent of new claims opened last year, while nearly one-quarter of new claims were filed by people in their 70s. Meanwhile, 65.5 percent of claims were commenced after the policyholder reached age 80, the AALTCI said.

The largest LTCI claim paid in 2011 totaled $3 million, while the largest claim still being paid exceeds $1.7 million in benefits, according to the report.

Why did they file?

Cancer was the leading cause for claims that began at home, while Alzheimer’s disease was the leading cause for claims in a nursing home or assisted living community.

What’s the point of all this data?

According to Jess Slome, executive director of AALTCI, information is a vital sales tool.

“The widespread question asked by individuals considering long-term care insurance is, ‘Will I ever use it?’ The best we can do is gather information on how people use their benefits.”

Here is more data from the report:

Pertinent Facts: Long-Term Care Insurance Claims
from the American Association for Long-Term Care Insurance (2012 Sourcebook)

$6.6 billion in LTC insurance claims paid (2011) – versus $6.1 billion for 2010

Claimant Age For New Claims (2011, individual LTC insurance)

Under 50 0.3%
Age 50 - 59 1.7%
Age 60 - 69 8.4%
Age 70 - 79 24.1%
Age 80+ 65.5%


Claimant Sex (2011, individual LTC insurance)

Female 65%
Male 35%

Percentage of New Claims Paid For (2011, individual LTC insurance)

Home Care 50.0%
Assisted Living 19.0%
Nursing Home 31.0%

Top Cause Of Claim

Home Care: Cancer
Assisted Living: Alzheimer’s
Nursing Home: Alzheimer’s

Long-Term Care Insurance Claims –
By Avg. Days On Claim (NH) or Home Care Visits
Nursing HomeHome Care
Alzheimer'sStroke
HypertensionNervous System
Nervous SystemAlzheimer’s
MentalArthritis
StrokeCirculatory
ArthritisRespiratory
CirculatoryInjury
InjuryDigestive System
CancerCancer


Largest open claim (Female): $1,700,000
The individual (a woman) purchased long-term care insurance paying an annual premium of $881. Three (3) years later her claim began and has continued for almost 15 years (benefits as of 12/31/11).

Largest open claim (Male): $1,200,000
The individual (a man) purchased long-term care insurance paying an annual premium of $3,374. Three years and 10 months later his claim began and has continued for just over six years (benefits as of 12/31/11).