The largest open long-term care insurance claim has reached $1.7 million in paid benefits, according to a new report from the American Association for Long-Term Care Insurance.
The policyholder purchased coverage at age 43 for an annual premium of $881. Her claim began three years later and has continued for 15 years, the association said.
"Insurers paid some $6.6 billion in benefits to roughly 200,000 individuals last year," Jesse Slome, the association's executive director, said in a press statement. "Long-term care insurance claims can last for years and amount to hundreds of thousands of dollars."
The association annually collects data on claims, including the largest open claims. The most recent report includes claims that were still being paid as of Dec. 31, 2011. The second-largest claim still open is for a man who purchased long-term care insurance at age 45 for an annual premium of $3,374. Three years later, his claim began and has continued for just over six years, with $1.2 million benefits paid for his care.
About 8 million Americans currently have some form of long-term care insurance coverage, the association said.
About 10 percent of new individual claims initiated during 2011 began before the claimant was age 70, the study showed. The five most common reasons for a long-term care insurance claim are Alzheimer's disease, stroke, arthritis, circulatory issues or injury, according to the association.