SERVICES : Employee Benefits GROUP LONG-TERM CARE INSURANCE SALES INCREASE IN 2007 Feb 11, 2008 by Insurance Newscast "There are now nearly 10,000 employer groups offering a form of employer-sponsored long-term care insurance with just over two million Americans insured by these plans," according to research conducted by the American Association for Long-Term Care Insurance and published in the organization's 2008 Sourcebook. "Sales of group long-term care insurance policies increased in 2007 compared to the prior year," explains Jesse Slome, Executive Director of the national industry organization. "Much of the growth came from new entrants into existing plans and buy-ups by existing policyholders." In 2007, the majority of buyers were under age 55 the Association study revealed. "Half of all new policies provided a current daily benefit of between $100 and $200-per-day," Slome reports. "Almost four out of five (79 percent) selected a five year or longer benefit period." Four of the nation's largest group long-term care insurers paid a cumulative $172.1 million in claims during 2007, a 16.9 percent increase over their benefit payments the prior year according to the Association study. "Nearly 12 percent (11.9 percent) of those receiving first-time benefit payments from their group long-term care insurance were under age 60," states Slome. "The largest open claim ranged from $340,000 to $458,000 with claimants having received benefits for between six and nine years." The study also found that payments for home care accounted for nearly 40 percent (38.3 percent), while payments for nursing home care equaled 44.5 percent. The complete study findings are contained in the 2008 LTCi Sourcebook published by the American Association for Long-Term Care Insurance (www.AALTCI.org). Copies are provided to Association members. Non-members can purchase the 48-page publication (Pre-Publication price is $49 through March 1, 2008; $59 regular price) by calling the Association at (818) 597-3227. Summarized Findings For Group LTC Insurance Study 2007 Sales By Issue Age Under 35 = 9% 35-44 = 18% 45-54 = 36% 55-64 = 30% 65-74 = 6% 75 or Older = 1% Age of Claimant For New Claims Opened In 2007 Under Age 50 = 3.3% Age 50 - 59 = 8.6% Age 60 - 69 = 18.5% Age 70 - 79 = 31.9% Age 80+ = 37.7% Percentage of Claims Paid For: Home Care = 38.3% Assisted Living = 17.2% Nursing Home = 44.5% Data from 2008 LTCi Sourcebook, published by the American Association for Long-Term Care Insurance, February 2008.
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Montgomery Insurance and Investments Agency, Inc. is a locally owned and operated independent insurance agency with specialists in personal and commercial insurance, financial services including investments and employee benefits. They have two conveniently located offices in the downtown areas of Jamestown and Xenia.
Left to right: Jim Saner, Eric Montgomery, Brad Montgomery and Roy Montgomery. "Prompt efficient service." - Paul & Edith Calloway DISCLAIMER - Securities and investment advisory services offered through Tower Square Securities, Inc., a member of FINRA / SIPC. Montgomery Insurance and Investments Agency, Inc. is not a registered investment advisor or a securities brokers dealer and has no affiliation with Tower Square Securities, Inc. Eric Montgomery is licensed in AL, CA, FL, GA, IL, IN, MA, MI, MO, NC, OH, VA, VT, WI, WV for the sale of security products. Roy Montgomery is licensed in OH for the sale of security products. Don Cain is licensed in OH for the sale of security products. |
| Xenia: 114 South Detroit Street • Xenia, OH 45385 • (937) 372-7646 Jamestown: 1 West Washington Street • Jamestown, OH 45335 • (937) 675-9321 |
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