80% of People Buying LTC Insurance Are Ages 45 to 65

80% of People Buying LTC Insurance Are Ages 45 to 65

July 9th, 2015Jul 9th, 2015 James Kelly Length 1:29
July 9th, 2015Jul 9th, 2015 James Kelly 1:29

The American Association for Long-Term Care Insurance (AALTCI), the national trade organization focused on educating individuals about the importance of planning for the risk of Long-Term Care. announced that a study of consumers who purchased Long-Term Care Insurance in 2014 are now much younger than ever before.

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 issued on July 9th, 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 are in better health and are able to take advantage of much lower premiums and discounts that generally are not available at older ages.

The report shows that in 2014 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.

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