Sales of insurance products associated with aging, such as long term care insurance, are on an upswing as baby boomers near retirement, according to a new analysis.
The analysis by Claritas Inc., San Diego, estimated that within the next 5 years the number of U.S. households that own LTC insurance will increase to 18% from 16.5%. In the Washington, D.C. designated market area, which includes portions of Virginia, Maryland and West Virginia, the percentage could increases to 21%, estimates Claritas, a market research firm. A DMA is the geographic area surrounding a city reached by broadcasting stations based in that city.
Currently, the Washington DMA leads the nation for LTC sales, with 8.1% of the households owning LTC and an index score of 129, meaning households this DMA are 29% more likely to buy LTC insurance.
Claritas vice president Jane Crossan said one factor that propelled the Washington, D.C. DMA to the top of the list is that 40% of its households have between $500,000 and $1 million in income producing assets, which is the highest growth segment for LTC insurance products.
The DMAs immediately trailing Washington D.C. in LTC sales are:
Myers-Naples, Fla: household penetration rate of 7.9%; index of 126
West Palm Beach, Fla.: 7.7%; 126
Baltimore, Md.: 7.7%; 123
Charlottesville, Va., Atlanta, Ga., Austin, Tex., Richmond-Petersburg, Va., and Dallas-Fort Worth, Tex: all with a rate of 7.4% and an index of 119.
San Francisco, Cal.: 7.3%, 118.