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What would you like to know
- About 14% of care recipients in the United States can use stand-alone LTCI to pay for care.
- Up to 12% can use life-LTC hybrids to pay for care.
- The use of stand-alone LTCI coverage to pay for care appears to be continuing.
About 23% of U.S. residents with long-term care can use some form of private insurance to pay for long-term care services.
Many use stand-alone long-term care insurance (LTCI) coverage, almost as many use products that combine long-term care and life insurance, and some use both stand-alone LTCI coverage and LTCI-life insurance or an LTC annuity. hybrids.
Genworth Financial reported the results Monday, in a summary of the results of a recent survey that examines how long-term care needs affect families. The survey sample included 299 people who used long-term care, 963 family caregivers, and 63 family members who were not informal caregivers.
Genworth released the report as long-term care counselors and LTCI issuers launched the 2021 Long-Term Care Awareness Month awareness campaign.
Brian Haendiges, president of Genworth US Life Insurance, said in a comment, included in the announcement of the report’s release, that the findings show that everyone needs to do more to help families cope.
“No one is immune to aging or its impacts, and this year’s research further underscores the need for us to work together to resolve the long-term care crisis that lies ahead,†said Handiges.
Autonomous coverage compared to hybrids
Here is an overview of the breakdown of LTC product types for survey participants who said private insurance was used to pay for care:
- Autonomous LTCI: 14%.
- Life insurance with dependency rider: 12%.
- Pension with an LTC rider: 4%.
The sum of these numbers is over 23%, as many care recipients who use some form of private insurance to pay for care use at least two types of private LTC coverage.
Genworth was one of the main writers of the standalone LTCI coverage.
Genworth began commissioning surveys that explore the impact of caregiving on caregivers in 2020. The company has since sponsored similar surveys every three years.
Genworth did not provide 2018 survey data on the use of LTC and life annuity benefits.
Reported use of stand-alone LTCI remained stable, with 14% of participants reporting stand-alone LTCI coverage was used to pay for care in 2018 and early this year.
Low interest rates and pricing issues have hit the LTCI market hard in recent years, but insurers continue to sell new policies. For a look at the five states with the most recent new stand-alone LTCI policyholders in 2020, see the slideshow above.
LTCI and actual costs
Care recipients who responded to the survey reported that their LTCI coverage paid on average 32% of their care costs.
Attitudes
Some LTCI claimants and agents have spoken of issues with the LTCI claims processes, but survey results suggest that LTCI coverage has helped many caregivers interviewed.
About 66% of family caregivers of care recipients with LTCI coverage said the recipients planned well, and 61% of those caregivers said their own out-of-pocket expenses were $ 500 or less.
Only 34% of family caregivers of care recipients without LTCI coverage said recipients planned well, and only 48% said their out-of-pocket expenses were $ 500 or less.
Pictured: Brian Haendiges (Photo: Genworth)
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