Sooner Rather Than Later: Women Can Expect to Pay More Premium for the Same LTCI Coverage

Gender based differences in pricing for life insurance is the industry norm. To regain profitability, the LTC industry is looking to do the same. According to the American Association for Long Term Care Insurance, female policy holders accounted for nearly two-thirds of the $6.6 billion of LTC insurance claims paid by the industry just last year.

Now is the time for your women clients to purchase LTCI. It is anticipated that before year-end, gender-based pricing will become the norm for the LTC industry. A female policy, with comparable benefits and age to a male policy, is expected to be as much as 20-40% more in premium than the male policy. You already know that women tend to live longer than men, hence they tend to need extended long-term health care more often than men do. So, the risk is larger for women and the LTC industry premiums will begin to reflect this fact.

A spokesperson for a leading LTCI carrier has said that they expect gender-based pricing to take effect as early as next month with their introduction of a new product. The change to gender-based pricing would not effect current policy holders.

So if you have women clients that are considering LTCI, there is truly no better time than the present to make that purchase.