The first national study of asset-based LTCI purchasers reveals the demographics of this group. The 2008 study showed that nearly half were under 65 years of age and just over 10 percent were between the ages of 45 and 54. Sixty-six percent were women, and the average single premium was $70,975, a 4 percent increase over the previous year.
The study was conducted by the American Association for Long-Term Care Insurance and examined more than 5,000 new policies. Jesse Slome, AALTCI’s Executive Director, explained, “Asset-based long term care insurance protection is becoming an increasingly popular way for individuals to protect against risk. Many individuals find this coverage attractive because if they don’t use their long term care protection, their beneficiaries still benefit from the life insurance coverage.”
Just under half of policies studied had a base value between $100,000 and $200,000. Another 30 percent had a value between $50,000 and $100,000. Sloan anticipates that the market for asset-based long term care protection will continue to increase, noting that “leading insurers such as Genworth Financial and Lincoln Financial Distributors are focused on the growth of this market and policy sales.”