Study Finds That the Need for Long-Term Care Insurance May Be Overstated
A new study by Boston College's Center for Retirement Research indicates that purchasing long-term care insurance makes finan...
Read moreThe number of individuals purchasing long-term care insurance has grown significantly in recent years, according to a survey by America's Health Insurance Plans, a health insurance industry group. The survey found that in 2002, 900,000 new long-term care insurance policies were sold. This is the largest number of policies sold in a single year since 1987, when AHIP first began analyzing the market. With this surge in sales, there have been 9.16 million policies sold since long-term care insurance first came on the market. The market grew an average of 18 percent each year between 1987 and 2002. From 1987 to 2002, half of the individual policies were sold in only 10 states: California, Florida, Illinois, Iowa, Minnesota, New York, Ohio, Pennsylvania, Texas, and Washington.
As of December 31, 2002, approximately 80 percent of all long-term care insurance policies were sold through the individual market. But 2002 was a good year for employer-sponsored plans as well. More than 280,000 new long-term care insurance policyholders, representing almost one-third of all policies sold in 2002, purchased their coverage though their employer. A significant portion of this growth can be attributed to the launching of the Federal Long-Term Care Insurance Program. This program made long-term care insurance available to federal government employees and annuitants and their qualified dependents and relatives. By the end of 2002, more than 5,600 employers were offering a long-term care insurance plan to their employees, retirees, or both.
The AHIP study also found significantly lower than expected rate of policyholders letting their policies lapse. AHIP estimates that roughly 7 in 10 of all individual policies sold remain in force.
To read or download the survey in PDF format, go to:
https://www.ahip.org/content/fileviewer.aspx?docid=522&link=1
(If you do not have the free PDF reader installed on your computer, download it here.)
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Read moreIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MOREIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
READ MOREApplying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.
READ MOREMedicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.
READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
READ MOREApplying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.
READ MOREMedicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.
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