Breakdown of a LTC Insurance Premium Dollar in 2020

LTCI Partners recently released an updated breakdown of how American’s LTC Insurance are allocated. Where does the majority go?

By Steve Cain | National Sales Leader | November 19, 2020

There’s no need to re-visit the history of Traditional LTC Insurance pricing again.  Most of our clients (Insurance specialists & Financial Advisors) know that 1^st Generation LTC Insurance was significantly underpriced.  But what about today’s coverage? Why do we feel confident in recommending these solutions? It’s because our industry learned from the mistakes made in the past – simply stated, we’re distributing 2^nd Generation LTC Insurance plans with much more conservative actuarial assumptions. We’re not going to bore you with actuarial studies that highlight the rate stability of today’s plans, so we’re sharing a breakdown Traditional LTC Insurance premiums.  As you see, the carriers are “baking-in” adverse underwriting decisions and also use most of the dollars for reserves to pay future claims.  Bottom line = LTC is a long-term business.