6.8 million people, over 13 percent of Americans aged 65 or older, held a long-term care (LTC) insurance policy in 2017.
Nationwide, across all ages, about 2 percent of the total U.S. population had an LTC policy that year, with most people who own one being at least age 50. This is according to data from Open Minds and the American Association for Long-Term Care Insurance (AALTCI).
According to AALTCI data, the top 10 states for LTC insurance policyholders are:
- California (634,572)
- Texas (443,963)
- New York (408,354)
- Florida (341,816)
- Illinois (332,446)
- Pennsylvania (265,239)
- Virginia (246,281)
- Ohio (243,181)
- New Jersey (218,164)
- Minnesota (216,012)
“The data comes from the National Association of Insurance Commissioners annual study which only looks at traditional LTCi plans,” said Jesse Slome, AALTCI director in the release accompanying the 2017 policyholder data. “Over the past few years, far more individuals have opted for linked-benefit plans that combine a life insurance or annuity policy with one that may also provide payouts for qualifying long-term care expenses.”
Slome also details that those who don’t partake of an LTC insurance policy earlier in life may end up paying significantly more for coverage if they wait until the point of retirement.
“I tell people that long-term care is a real risk that faces all Americans but insurance is an option for a specific segment of the U.S. population. You have to be someone who believes in planning,” Slome said. “You have to be able to health-qualify for this protection and you have to be able to afford the premiums which generally range from about $100-monthly when you apply in your mid-50s to twice that if you wait until your 60s.”
Although millions of people have purchased an LTC insurance policy, there are existing signs pointing to the protection becoming more difficult for seniors to adequately fund, which prompted the AALTCI to release a series of saving strategies with the release accompanying its last price index.