Costs for related benefit long-term care insurance policies — policies that are tied to other types of policies, such as life insurance — will generally be between 10% and 15% lower in 2023 than last year. That’s according to the annual price index released by the American Association for Long-Term Care Insurance.
“When interest rates rise, insurers are in a better position to charge less,” AALTCI Director Jesse Slome said in a statement. “The cost for a related benefit long-term care insurance policy is definitely lower.”
A 55-year-old man will pay $3,930 annually in 2023 for a related benefits policy, also called a hybrid policy, which will provide a pool of $180,000 in long-term care benefits. This number represents a 15% decrease from last year, according to the AALTCI.
Traditional long-term care insurance policies are more efficient than hybrid policies, says Slome, “because they only do one thing: pay for qualified long-term care. … People love the fact that a benefits-related LTC policy does double duty, providing a life insurance death benefit if no long-term care is needed.” Rates for traditional long-term care policies are also slightly lower year-over-year, he said.
These insurers still sell traditional long-term care policies, according to the AALTCI: Bankers Life, Mutual of Omaha, National Guardian Life, New York Life, Northwestern Mutual Life, and Trivent Lutheran.
AALTCI notes that policy cost and benefit options can vary significantly, as can benefit plan options between carriers, so it’s important that buyers speak to a specialist who can educate them and compare policies.
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