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Report Looks at What People Are Paying for Long-Term Care Insurance
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.
For more details, including tips for saving money when buying long-term care insurance, click here.