Costs for linked-benefit long-term care insurance policies — policies linked with another type of policy, such as life insurance — generally are between 10% and 15% lower in 2023 than they were a year ago. That’s according to the annual price index released by the American Association for Long-Term Care Insurance.
“When interest rates rise, insurers are in a better position to charge less,” AALTCI Director Jesse Slome said in a statement. “Costs for linked-benefit long-term care insurance policies are definitely lower.”
A 55-year-old man would pay $3,930 yearly in 2023 for a linked-benefit policy, also called a hybrid policy, that would provide a pool of $180,000 long-term care benefits. This amount represents a 15% decrease from last year, according to AALTCI.
A traditional long-term care insurance policy is more efficient than hybrid policies, Slome said, “because the policy does only one thing: pay for qualifying long-term care. …People like the fact that linked-benefit LTC policies do double-duty, providing a life insurance death benefit if no long-term care is needed.” Rates for traditional long-term care policies also are slightly lower year over year, he noted.
These insurers still sell traditional long-term care policies, according to AALTCI: Bankers Life, Mutual of Omaha, National Guardian Life, New York Life, Northwestern Mutual Life and Thrivent Lutheran.
AALTCI noted that policy costs and benefit options can vary significantly, as can benefit plan options between carriers, so it is important that purchasers speak with a specialist who can educate them and compare policies.
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