• Mary Sizemore

Long-Term Care Insurance Claims are on the Rise.

Recent data released from AALTCI, shows that carriers have paid out $700 million more dollars in 2021 than over the previous year. This equates to a total of $12.3 billion in claims for 2021. Long-Term Care benefits have been paid to 336,000 policyholders with 11,000 new individuals on claim for 2021. For the full article, please click here.

Why are we seeing an increase in claims?

There are many reasons, these are just a few of the top causes

  • Advances in medical technology– the very technology that has been designed to save our lives could also be increasing our risk for dependency. Think about the person who suffers a stroke. Years ago, that would have been a life ending health condition, now with treatment – you may survive but with catastrophic consequences.

  • Increased awareness of medical conditions and their diagnosis – the more research that is done for certain conditions like Alzheimer’s and Parkinson’s – we are seeing an increased awareness of symptoms that years ago, would have been ignored or overlooked. At a local company here, I know of 5 males that have been diagnosed with Parkinson’s disease – they are all under 55. They were told that Parkinson’s disease is becoming more and more prevalent. Symptoms that they originally chalked up to aging or inactivity are now tied to this disease. Early on-set of Alzheimer’s continues to make headlines across the Nation.

  • We are living longer – because of advances in medical technology we are living longer but are we living healthier? 4 in 10 Americans are on the obesity scale. Why eat healthy when you can take a pill for high blood pressure or cholesterol? We are a busy society that is often eating on the go and not exercising nearly as much as we should. The longer we live, the greater chance that we will require long-term care services.

All of this adds further validation to the importance of long-term care insurance. Once the policyholder meets their benefit trigger and are certified as chronically ill or have a severe cognitive impairment - LTCi carriers are fulfilling their obligations to the policyholders. As long-term care insurance specialists, we must remain steadfast in recommending this product to our clients as an affordable solution to their risk of dependency. For more information on the products available in your state, please speak with one of our marketing specialists at 1-800-945-1953.

For more long-term care insurance statistics, visit the American Association for Long-Term Care Insurance’s website.

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