UPDATED September, 2019
The awareness of Long-Term Care Insurance and the need to plan for the impact longevity will have on a future retirement has increased dramatically in the past ten years. Most people are researching Long-Term Care Insurance and finding that purchasing a plan before retirement is the best way to address the issue of extended care as they get older.
"We'll tell you that for most people. the best age to apply is in your mid-50s. You can lock in your good health," said Jesse Slome who is president of a national group dedicated to educating Americans on long-term care planning.
Recent sales of Long-Term Care Insurance products continue to show younger and younger Americans purchasing policies as they are focused on their future retirement. This data reaffirms a study from 2014 by the group.
The American Association for Long-Term Care Insurance (AALTCI) study of consumers who purchased Long-Term Care Insurance in 2014 shows these younger buyers.
The results are part of the AALTCI’s annual Source Book which surveys information regarding Long-Term Care and Long-Term Care Insurance. The sourcebook is used by media and industry professionals and is published on an annual basis.
In a tweet, AALTCI executive director Jesse Slome said that consumers are buying at much younger ages. According to specialists in long-term health care planning, younger consumers enjoy better health and can take advantage of much lower premiums and discounts that generally are not available at older ages.
TThe 2014 report, which still reflects current trends, showed 80.2% of all purchasers of Long-Term Care Insurance were age 45 to 65. 11.8% were under age 45.
"Buyers are younger, they begin with lower amounts of initial coverage and they select options that reduce their cost significantly."
"Nearly 40 percent of buyers were age 54 or younger, compared to 29 percent who purchased in 2012."Jesse Slome, AALTCI executive director
"Buying younger makes sense because premiums are less expensive and several leading insurers now offer some very attractive options that allow you to increase coverage in future years even if your health has changed."
One of the most significant changes revealed by the study affects the future growth of policy benefits.
"Over half (51%) of buyers in our prior study selected an option where their available pool of benefit dollars increased by five percent yearly."Jesse Slome
According to the Association research, only 14.5 percent selected this option when purchasing coverage in 2014. Nearly half now selected a three percent growth option.
Good health is an important consideration in your ability to purchase a Long-Term Care policy. The AALTCI says 44% of those age 70 to 74 get declined for coverage. This compares with 30% declined ages 60 to 69, and 22% declined ages 50 to 59. Yet, 20% of those under age 50 still get declined. An experience Long-Term Care Insurance specialist will review your health and family history in detail to help you find the best plan that matches your age, health, and financial and family goals.
Affordable Long-Term Care Insurance provides you with the tax-free resources to pay for quality care without draining savings and adversely impacting your income and lifestyle. However, long-term care is all about family. It allows your family the time to be family as you get older and not having the deal with the role of caregiver.
The best time to start planning is before your retirement, ideally in your 40s or 50s when you can enjoy low premiums and the most options.
Start your research by going to the LTC NEWS cost of care calculator. Find your state and see the current and future cost of long-term health care. Plus, you will see additional information including state-specific tax incentives and more. Click here to find your state.
Be sure to get the help of an experienced Long-Term Care Insurance specialist. They should represent multiple insurance companies, understand how the Long-Term Care Partnership Program works, and have extensive claims experience. A qualified specialist will know how to design a very affordable plan which matches your age, health, finances, and goals. Find a qualified specialist by clicking here.