LONG-TERM CARE INSURANCE BUYERS YOUNGER
Nov. 1, 2007
Note: Media who would like more information on younger buyers and trends in long-term care insurance should contact Jesse Slome, Executive Director at (818) 597-3227.
Eight million Americans now own long-term care insurance according to a study released by the American Association for Long-Term Care Insurance to mark the occasion of Long-Term Care Awareness Week [ November 4-10, 2007 ].
The study reported that the average age of buyers dropped below 60 for the first time. "The average age of Americans purchasing individual long-term care insurance protection is now 58," states Jesse Slome, the Association's Executive Director. "That's a significant change from as recently as 2000 when the average age was 67." Increased public understanding of the importance of planning prior to retirement and lower costs available at younger ages are factors impacting the trend.
A significant finding of the study, which compiled data from leading long-term care insurers, was that women accounted for slightly over two-thirds (66.3%) of individuals currently receiving benefits under a long-term care insurance policy. "Insurers pay over $3.3 billion in yearly long-term care insurance benefits and 68.7% of these payments benefit women," Slome added. "Long-term care planning is especially important for women who are single, married, divorced or widowed because they are far more likely to need long-term care (than men) and, as the study now reveals, far more likely to benefit from their insurance protection."
Key Results of Study by the American Association for Long-Term Care Insurance
58 is the average age of purchaser (individual long-term care insurance policy).
14.3% of purcyhasers were under age 50. 46.0% were between 50 and 60. 39.7% were over age 60.
$154 is the average daily benefit for long-term care insurance protection purchased.
9.4% purchased less than $100 per-day. 39.4% purchased between $100 and $150 per-day. 51.2% purchased over $150 per-day.
66.3% of claimants receiving benefits from their long-term care insurance policy are women.
68.7% of total benefit dollars are paid to women (2006 beneits paid).