Long-Term Care Benefits Increase in Popularity

February 28, 2002 (PLANSPONSOR.com) - The number of companies offering long-term care insurance as a benefit has skyrocketed over the last decade, a new industry study reveals.

The study, by the Health Insurance Association of America (HIAA), found that 3,200 employers had long-term care on their benefits list – up dramatically from 135 in 1990, according to a report from the Insure.Com Web site.

In fact, HIAA said employers owned a quarter of the total long-term care market as of 1999 when companies purchased more than one million policies.

The average annual premiums in 1999 for basic long-term care insurance were:

  • $300 for a 40-year-old,
  • $409 for a 50-year-old, and
  • $1,002 for a 65-year-old

Overall sales figures showed that the number of Americans buying the product more than tripled from 1.9 million in 1990 to 6.8 million in 1999.