A study by the American Association for Long Term Care Insurance finds 66% of buyers of combination long term care-life insurance policies in 2008 were women.
The average single premium paid for these combination policies, also known as asset-based LTC insurance, was just under $70,975, reports AALTCI, Westlake Village, Calif. This was up 4% over 2007, when the group reported an average premium of $68,300 for such policies.
AALTCI examined 2008 sales data for over 5,000 new asset-based LTC policies and found around 50% had a base face amount for life insurance of between $100,000 and $200,000. About 30% had a face amount of between $50,000 and $100,000.
“Policies offer a long term care insurance protection in multiples of the life insurance benefit,” explained Jesse Slome, executive director of the AALTCI.
Purchasers of asset-based LTC policies were almost equally divided between pre-65 (49%) and 65-or-older (51%). Around 11% were between ages 45 and 54. In comparison, 84% of buyers of traditional LTC insurance in 2008 were younger than age 65, according to the association
The recent study also found that 70% of submitted combo policy applications by individuals between 45 and 54 were accepted by insurers, compared to around 61% of applicants between ages 65 and 74.