Long term care insurance statistics from LTCi Sourcebook

continues to decline according to research by the American Association for Long-Term Care Insurance the national trade organization.

According to data gathered from leading insurers, 56 percent of new male buyers of life insurance plus long-term care policies were age 64 or younger.  Some 53.5 percent of new female purchasers in 2012 were age 64 or less.

“The percentage of younger buyers continues to grow compared to prior years,” states Jesse Slome, AALTCI’s executive director.  According to the organization’s studies, the some 53.5 percent of male and 50.0 percent of female buyers in 2011 were 64 or younger.  For 2010, the AALTCI study reported 48.5 percent of men and 44.3 percent of women fell into this age category.

“We attribute the change to an increase in the number of insurance and financial consultants marketing linked benefit products and a greater emphasis by insurers on attracting younger buyers,” Slome noted.  “I would anticipate that the average age of buyers will continue to decline especially as the awareness and marketing of flexible premium policies grows.”

The Association’s analysis of over $400 million in new sales during 2012 found that 31.5 percent of buyers were men and 68.5 percent were female.  Complete findings will be published in the Association’s 2013-2014 Long-Term Care Insurance Sourcebook.   Copies are mailed to all Association members or may be purchased for $99.

Founded in 1998, the American Association for Long-Term Care Insurance is the national trade organization established to create heightened awareness and understanding of the importance of long-term care planning and the various financial options available.

For long term care insurance costs or to connect with a designated specialist, a member of the American Association for Long-Term Care Insurance, visit the organization’s website or call 818-597-3227.

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“The concept of the Partnership was to make coverage attractive to more middle income consumers but the onerous requirements now make this so costly that it is out of reach for the very consumers it was intended to benefit,” declares Jesse Slome, executive Director of the American Association for Long-Term Care Insurance.   Speaking to New York State insurance professionals, Slome noted he was an ardent supporter of the Partnership concept when it was first introduced in the early 1990s and was the first marketing consultant for the California Long-Term Care Insurance Partnership.

“Unfortunately an incredibly good concept that I once called ‘the best kept secret ‘ in The Wall Street Journal has turned into a relic today because it has not kept up with the current economic environment,” Slome explained.  The national long term care insurance expert noted that the New York State Partnership’s own website says the average base policy premium in 2012 for a 60 year old individual was $3,979 and $4,862 for a 65 year old.

“Most senior couples just are not able or willing to pay $10,000 or more a year,” Slome explains “and the fact is they do not have to in order to put a sound long-term care insurance plan of protection in place.”

According to the Association, a 60-year old couple each obtaining $220,000 of current coverage that will grow at three percent yearly will cost anywhere from $4,000 to $5,000 a year.   “For that 60-year couple, the $440,000 of immediate coverage for each will grow to almost $1 million of coverage for the couple when they reach age 85, and are most likely to need long term care services.”

The organization director shared that rates for coverage from leading insurers varied significantly.  “Each company today has a sweet spot in terms of premium costs and health requirements,” Slome shared.  “Consumers are increasingly aware of this and are  looking for professionals who can compare and offer policies from multiple insurers.”

For long term care insurance costs or to connect with a designated specialist, a member of the American Association for Long-Term Care Insurance, visit the organization’s website or call 818-597-3227.

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