Long-term care insurers paid out $12.3 billion in claims nationwide during 2021, a significant increase over prior years, according to the American Association for Long-Term Care Insurance.
AALTCI Director Jesse Slome said that payments to policyholders grew by approximately $700 million compared with the 2020 payout, which is $2 billion more than the total claim benefits paid by long-term insurers back in 2018. Additionally, he said, the number of individuals paid during 2021 increased by approximately 11,000 compared with the previous year.
“Even if you do a simple calculation, the average claim amount paid out for the year would equal $36,600. And claims can last for several years,” Slome said.
“Some claims amount to small amounts, and some can be significant, totalling over $1 million,” he added.
The association’s report represents claims for those owning traditional or health-based long-term care insurance but does not include data for those who have purchased a linked-benefit policy, such as life insurance or annuity policies that also can provide payout money to pay for long-term care needs.
