When I first started in financial services in 1975, I was hired by a company called American National to sell life and health insurance policies. I was able to earn a living and discovered that not having a regular paycheck was survivable. And fortunately, my wife chose to tough it out with me. Over the years, I’ve reinvented myself about once every eight years as the industry changed, the rules changed, the products changed, and the process itself changed. That I’ve survived to this day suggests I did something right along the way.

Every week, we get notices from different companies about premium rate increases, interest rate reductions and even cancelations of offerings in life, annuity and long-term care policies. This is not difficult to understand in the current interest rate environment. When you consider the 10yr Treasury rate is below 1.5%, it is impossible for the companies to continue offering products based on 4-5% yields. That is why, if any of you are considering the purchase of these types of contracts, you should act soon and not wait.

If any of you are “thinking about” that long-term care proposal that either I or some other agent gave you a while back, you are encouraged to act NOW. Waiting isn’t going to benefit you. Not having a Long Term Care policy is even worse. Look at these stats from the latest AALTCI Source Book on the chance that someone who owns long-term care insurance will actually use their policy at various ages.

These are based on policies with a 0-day wait. It references the likelihood that claims against the policies will be made.

Attained age 60: 65% Chance

Attained age 65: 69% Chance

Attained age 75: 75% Chance

Attained age 80+: 75% Chance

Here’s my point in a nutshell: you will never consider going without Auto Insurance with a .33% chance of a claim, or homeowner’s policy with a .77% chance of a claim. But, for some reason you want to delay a LTCi contract when there is a 50+% chance of claiming on it, even though you can afford it and that has benefits that could exceed $¼ million?

The Largest Claim Payout Ever …Over $3 Million!

Some other recent stats that have come to light from the latest SOA (Society of Actuaries) study on long-term care usage.
• Average length of claim increased to 1040 days (914).
• 66% of nursing home claims end in death (68%).
• About half of home care claims end in death and half in recovery.
• Alzheimer’s claims are the most frequent, longest and most expensive.
• Alzheimer’s is the leading cause of claim from age 65 on (70%).
• Cancer is the leading cause of claim below age 65.
• Arthritis claimants use the most days of (home) care per week.