Individuals are paying up to 27% less for linked-benefit long-term care insurance coverage than they were a year ago, according to an annual price index released Thursday by the American Association for Long-Term Care Insurance.
In 2023, costs generally were 10% to 15% lower than they were the previous year, according to AALTCI.
The effect on assisted living, skilled nursing and home care providers could be significant, as “someone applying for new coverage in 2024 can obtain more coverage for less cost than basically the identical coverage purchased a year ago,” AALTCI Director Jesse Slome said in a press release issued in conjunction with the release of the information.
“It will make long-term care insurance more attractive to individuals,” Slome told the McKnight’s Business Daily. “More policies mean more people will have options when it comes to where and from whom they will receive care.”
According to the 2024 price index, a single 55-year-old male purchasing coverage that would provide approximately $520,000 in potential long-term care benefits when the male was aged 90 years could expect to pay $5,022 in annual premiums. The same coverage would have cost $5,600 according to AALTCI’s 2023 price index.
“Savings were higher for women, according to our analysis, and those who paid for coverage with a single lump sum would enjoy greater savings this year,” Slome said.
One explanation for the decrease in cost could be that more insurers are beginning to offer linked-benefit policies that combine life insurance with the potential for long-term care benefits, according to AALTCI.
