Workers expect their defined contribution plans to play a greater role in their retirement income than annuities.
LOS ANGELES, Jan. 14, 2014 /PRNewswire-USNewswire/ -- A healthy 55-year-old man can expect to pay 15 percent less for long term care insurance coverage compared to last year. A married couple, both age-60, faces a seven percent increase according to a just-published report.
"Costs have risen slightly for couples, increased more significantly for single women but have actually decreased for men reports Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI) a national trade group.
According to the AALTCI 2014 Long-Term Care Insurance Price Index, the average cost for a 55-year-old male purchasing $164,000 of long-term care insurance protection is $925 a year. Equal coverage for a single woman costs $1,225.Leading insurers began charging women higher premiums in 2013. "Women account for two-thirds of the $6.6 billion in claims paid by insurers last year," Slome acknowledged.
A 60-year old couple each purchasing $164,000 of current protection that will grow to $730,000 combined when both reach age 80, will pay an average of $3,840 yearly, a three percent increase over the prior year's average. "Adding an inflation growth option builds your benefits over time but it can double the base cost of coverage," Slome adds.
"Insurers offer a variety of discounts and options that can enable an individual to reduce the cost of protection," explains Tracy Russo, Partner at The National LTC Education Center."Today there are more choices available for consumers to protect against the very real risk of needing care." Russo notes that it's best to plan in your mid-40s to mid-60s.
According to AALTCI, costs for policy coverage vary significantly from one insurer to the next. "The typical difference is around 80 percent but in certain cases one insurer charged 109 percent more than another industry leader," states Nicole Marchand, LTC Case Design Specialist at HTA Financial Services, a leading Long-Term Care Insurance Brokerage firm headquartered in West Chester, PA. "We can no longer assume which carriers will offer the most favorable rates. We research every carrier for each client to provide the best solution at a reasonable price."
Individuals interested in learning more or seeking long term care insurance costs can contact the American Association for Long Term Care Insurance by calling 818-597-3227 or visit the organization's website www.aaltci.org to read free consumer tips or call HTA Financial at 888-430-6650.
CONTACT: Jesse Slome, 1-818-597-3227, firstname.lastname@example.org
SOURCE American Association for Long Term Care Insurance