LTC Insurance One national study projects that 43% of those who turned age 65 in 1990 will enter a nursing home at some point during their life. It is also important to realize that long-term care is not limited to the elderly. Functionally disabled people between the ages of 18 and 64 make up 40 percent of Americans needing long-term care services. Today’s LTC product uniquely fills the needs of many of the 33 million Americans age 65 and over, plus many of their 76 million children -- the baby boomers, who are beginning to turn 50 this year. Most of today’s LTC policies are vastly superior to earlier products, which required a three day hospital stay to start benefits, had many gatekeepers, and covered only skilled nursing facility charges. While they were the best that could be offered at the time, increased underwriting and claims experience has made it possible for today’s LTC products to offer options and benefits unheard of just five years ago. They not only cover nursing home care, but also pay for care at home and in community settings such as assisted living facilities and adult day care centers. Most policies now can start benefits because of a cognitive impairment or because of inability to perform a specified number of activities of daily living. They cover all levels of service, including custodial care. Home care and care in community settings are routinely included. Alternate plans of care, bed reservations, respite care and once-per-lifetime elimination periods are now standard features of many policies. Most policies now feature an inflation adjustment option that automatically increases policy benefits each year. This is usually based on a specific rate, often 5 percent, simple or compound, and extends over the life of the policy. American Independent Marketing (AIM) and American Independent Underwriters (AIU) market many of the today's state-of-the-art LTC insurance products.
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