More than half of individual long-term care insurance buyers were between the ages of 55 and 64 in 2008. The findings are the latest from The American Association for Long-Term Care Insurance. The organization analyzed data on 215,000 buyers of individual long-term care insurance protection and found 84 percent of individual buyers last year were younger than age 65.
"The age of buyers keeps dropping as consumers - especially baby boomers - understand the cost-saving benefits of locking in good health discounts and ways to make protection more affordable," says Jesse Slome, the association's executive director. Research shows that in 2000, the average age of an individual buying long-term care insurance was 67.
More than three-fourths (76 percent) of buyers in 2008 opted for coverage for a claim lasting five years or less; a slight increase over the prior year (71 percent).
"The most expensive long-term care insurance policy is one with an unlimited benefit period (one with no cap on the number of years benefits will be received)," Slome explains. "Consumers are right-sizing their protection taking into account available savings and retirement income. This cost-sharing approach can reduce the cost of protection by 30 percent or more."