One of the most difficult decisions in long-term care planning is whether to purchase long-term care insurance (LTCI) and whi...Read more
Study Finds Affluent Far More Likely to Purchase Long-Term Care Insurance
- April 26th, 2011
Private insurance to cover long-term care needs remains relatively rare, but coverage rates are nearly twice as high among those with annual incomes in excess of $100,000, according to a new report by the Urban Institute.
The report found that although only 10.7 percent of Americans age 55 and older had private long-term care insurance in 2008, coverage rates increase with income, reaching 19.3 percent for those whose annual incomes exceeded $100,000. By contrast, only about 3 percent of those age 55 and older with incomes below $20,000 had private coverage. While 12.4 percent of non-Hispanic whites had long-term care insurance policies, only 3 percent of African Americans and only 2.4 percent of Hispanics had them.
Local Elder Law Attorneys in Ashburn, VA
Needham Mitnick & Pollack, PLC
Susan Pollack served as Chairperson of the Falls Church Senior Citizens Commission from 1997 to 2011 and was on the Executive Board of the Falls Church Education Foundation. She has also served on the Board of Directors of the Alzheimer’s Association of the National Capital Area and is a member of the Arlington B...
Ron M. Landsman, P.A.
Ron M. Landsman has been practicing elder law since 1983, before it was known as elder law, originally with Landsman and Laster, Washington, D.C., then Landsman, Eakes and Laster, also in Arlington, VA, and since 1990 in his own practice in Montgomery County, Maryland. He has been among the most active members of the...
Still, the report found that coverage rates have increased somewhat in recent years. In 2002, 9.1 percent of Americans age 55 and older had private long-term care insurance.
Meanwhile, overall sales of long-term care insurance policies increased in 2010 according to the American Association for Long-Term Care Insurance, an industry trade group. The Association reports that individuals who purchased long-term care insurance protection in 2010 continued to favor limited-duration policies, with more than half of new purchasers selecting policies with a benefit period of four years or less. (For more on this option and on considerations in purchasing long-term care insurance in general, click here.)
To read the Urban Institute report, "Who Purchases Long-Term Care Insurance?" click here.
Last Modified: 04/26/2011