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Who’s buying LTCI?

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Typical long-term care insurance (LTCI) applicants may still be ages 60 and older, and it looks as if most still apply for coverage with a benefit period of at least three years.

LTC Consumer, a long-term care (LTC) planning firm, has published data supporting those LTCI applicant conclusions in an analysis based on a review of 2,049 LTCI applications it handled. The firm submitted the applications from Jan. 1, 2013, through Nov. 21, 2014.

LTCI issuers have been encouraging consumers to apply for coverage earlier, and they have talked more about the idea of coping with shifts in the LTCI market by buying smaller amounts of coverage.

See also: AALTCI: Average age of life-LTC insureds drops

When LTC Consumer analysts looked at the firm’s own book of business, they found that only 8 percent of the applicants were ages 49 or younger, and that only 5 percent were 70 or older. 

Twenty-six percent were ages 55 to 59, and 36 percent were ages 60 to 64.

Only 2 percent were applying for coverage with a benefit period longer than five years, but only 17 percent applied for coverage with a benefit period shorter than three years. The most common benefit period choice was three years: 58 percent of the applicants were looking for coverage with a three-year benefit period.

See also: 20 ways to impress LTC planning prospects