More than a third (35.4 percent) of individuals who recently purchased long-term care insurance are paying less than $1,499 a year for the coverage, according to a new report by the American Association for Long-Term Care Insurance, an industry trade organization.
The organization analyzed data on some 93,500 new long-term care insurance buyers. Age at the time of application plays an important role in determining the cost for long-term care insurance, the study reports. While 41.5 percent of buyers under age 61 pay between $500 and $1,499-per-year, only 20.8 percent of buyers who are ages 61-to-75 pay within this range. About one in 10 of all buyers (9.5 percent) are paying $4,000 or more yearly for their insurance, the report indicates.
“Individuals mistakenly have been led to believe that long-term care insurance costs thousands of dollars,” says Jesse Slome, the Association’s executive director. “A significant number of individuals today pay between $10 and $20 a week. That’s a highly affordable way to protect $150,000 to $250,000 of future care.” Slome notes that buyers in their 50s will be more likely to qualify for health discounts.
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