April 14, 2011
Twenty-five states reported a double-digit percentage increase in the number of residents with long-term care insurance according to annual data compiled by the American Association for Long-Term Care Insurance (AALTCI). The data will be published in the organization’s 2011 LTC Sourcebook.
Smaller states recorded the greatest percentage growth compared to the prior year’s report. “The number of insured individuals in Alaska grew by nearly 130 percent,” explains Jesse Slome, AALTCI’s executive director. “Other smaller states like Wyoming (62%) and Vermont (48%) saw significant increases as well.”
According to the Association’s Sourcebook, states with the largest number of residents owning long-term care insurance include California, New York, Texas, Florida and Illinois. “New York with over 450,000 policyholders recorded the largest percentage increase in covered lives with nearly eight percent more insureds,” Slome reports. Only two states (Pennsylvania and Missouri) saw year-to-year declines in the number of residents with coverage. Declines may occur because the number of lapsed policyholders and deaths exceed the number of newly insured individuals.
“Sales of long-term care insurance are increasing as more consumers recognize the importance and affordability of this protection,” Slome notes. “Many insurance agents are having their best years as prospects are seeking them out; something that has never occurred before.”
The annual Sourcebook is published by the Association and mailed free of charge to all members. Founded in 1998, the American Association for Long-Term Care Insurance is the national trade organization established to educate both consumers and financial professionals about the importance of long-term care planning. The organization’s online Consumer Information Center has been nationally recognized as the industry’s most comprehensive third-party resource for current information on the topic.