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AALTCI: Average age of life-LTC insureds drops

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The American Association for Long-Term Care Insurance (AALTCI) says the typical age of buyers of life insurance-long-term care (LTC) hybrids is falling.

The percentage of male buyers who are under age 65 increased to 56 percent in 2012, from 53.5 percent in 2011.

The women of female buyers who are under age 65 increased to 53.5 percent, from 50 percent.

AALTCI has based those figures on an analysis of $400 million in new 2012 sales and a comparable analysis of 2011 sales.

About 31.5 percent of the 2012 life-LTC hybrid buyers were men and 68.5 percent were women, according to AALTCI.

AALTCI is preparing to publish the life-LTC hybrid figures in its upcoming 2013-2014 Long Term Care Insurance Sourcebook. 

AALTCI Executive Director Jesse Slome said in a statement about the results that he sees a “greater emphasis by insurers on attracting younger buyers.”

Efforts to sell flexible-premium life-LTC policies could help insurers continue to increase the amount of business they get from younger consumers, Slome said.

Meanwhile, another organization, LTC Tree, said it has noticed a shift in approval rates for consumers who are applying for traditional LTCI coverage.

LTC Tree runs a Web-based LTCI supermarket.

LTC Tree has found that the approval rate for consumers who applied through agents affiliated with the firm fell to about 65 percent in 2012 and 2013, from about 81 percent from 1999 through 2011.

“With more applicants for long-term care insurance being rejected, starting this important piece of retirement planning at an earlier (and healthier) age is more important than ever,” the company said.

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