Aug 26 2013, 3:08am CDT | by PR.com
Los Angeles, CA, August 26, 2013 --(PR.com)-- Simplistic reports of data regarding long term care insurance policy sales result in a misunderstanding of market trends says the director of the American Association for Long-Term Care Insurance.
"During the first half of 2013, nearly 100,000 individuals purchased traditional long term care insurance policies and tens of thousands purchased life insurance and annuity products that provide long term care benefits," declares Jesse Slome, executive director of the national long term care insurance industry trade group. Slome was responding to questions by executives who market long term care insurance following a report that industry sales had declined 20 percent during the second quarter of 2013.
"Several long term care insurance carriers are reporting sales increases of 20 percent or more, and no one cites that," Slome shared with the group. "Others experienced sales growth of between 10 and 20 percent. Overall sales were down due to several factors that impacted the first half of the year." Among those, Slome noted the failure of California's Department of Insurance to approve newer policy filings had impacted sales. "When the largest state in the nation has few options available, sales are going to be impacted."
The national long term care insurance expert pointed to the continuing trend among insurance companies to be more selective in terms of accepting applicants. "The knowledge gained over the past 20 years helps insurers understand long term health risks and to keep policy costs as low as possible which is what consumers want. As a result, they will reject more applicants with existing health issues," Slome explains. "That reduces the number of overall policies sold."
"Long term care is a universal issue facing Americans who are now living longer lives than ever but long term care insurance is not the universal solution," Slome stated to the executives. "There is a very defined market for this product but that is limited to those who can afford the premiums as well as meet the health qualifications when they apply."
"Those who advocate a new national long term care insurance program as part of Medicare have yet to make a proposal that has any semblance of reality," Slome concluded. "We don't see the American public or politicians for that matter ready at this point to add a new health care-related mandate or increase taxes, which leave families only three options; turn family members into caregivers, pay for care or have insurance to pay some of the cost of care."
For additional information or to request long term care insurance costs and information connect with a designated long term care insurance specialist who is a member of the Association by calling the organization at 818-597-3227 or visiting their website.
Read the full story here: http://www.pr.com/press-release/511964
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