Americans Purchasing More Affordable Long-Term Care Insurance Study Finds

Feb. 19, 2010 - PRLog -- More than half (84%) of individuals purchasing long-term care insurance do so prior to retirement age (65) according to a just-published research report by the American Association for Long-Term Care Insurance (AALTCI).

"The average age of an individual purchasing long-term care insurance is now 57," according to Jesse Slome, Executive Director of the industry trade group.  The average age in 2000 was 67.  Some 77 percent of buyers of individual policies are between ages 45 and 64 the study found.   Those purchasing insurance coverage through an employer-offered plan are younger.

According to the organization's research, 72 percent of those purchasing long-term care insurance through an employer-sponsored plan were age 55 or younger.  "About a quarter (24%) of those buying protection through an employer plan were between age 35 and 44," Slome notes.  For traditional individual plans purchased through an independent insurance professional, only five percent fell into this age category.

The cost of long-term care insurance is based on your age when you first apply.  "Buying when you are younger makes the protection significantly more affordable," Slome explains.  "After you turn 50, costs for identical coverage can increase by between five and eight percent for each year you delay."

Individuals are opting for more affordable levels of long-term care insurance protection the study finds.  "More than half (52%) of those purchasing an individual policy selected coverage that would extend protection for as long as four years," Slome explains.  

The current study found that only 13 percent opted for unlimited (or lifetime) coverage, compare to 18 percent who purchased lifetime protection in the prior year.  A plan offering payments for three years can be as much as 40 percent less expensive than one that provides benefits for an unlimited number of years.  

Among the findings, the Association reported an increase in the number of people purchasing coverage as part of an offering from an association or affinity group they belong to.  "A number of insurers now offer discounts of from five to 10 percent to those purchasing coverage under such an arrangement, Slome adds.  Some insurers now offer the discount when as few as three people participate in the group offering.

The American Association for Long-Term Care Insurance  http://www.aaltci.org/  is the national association serving insurance and financial professionals who provide long-term care financing solutions.  The organization is headquartered in Los Angeles, CA.

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American Association for Long-Term Care Insurance http://www.aaltci.org is the national trade organization for long-term care insurance industry.