Key Person Key Person Contingent Contingent Life Life
news & trends
76%
facts & figures
71%
LTCI Buyers Are Younger
Drug Abuse •
Alcohol Abuse •
Traffic Violations •
International Travel •
War Coverage •
About 400,000 people bought long-term-care insurance in 2008, according to a recent annual report from the American Association
for Long-Term Care Insurance. Most (84 percent) individual buyers were
under the age of 65, and 76 percent bought LTCI for a specific number of
years to cut costs.
The association analyzed data on 215,000 buyers of individual LTCI,
and its research shows that about 8. 2 million Americans have LTCI.
“Individuals continue to purchase protection at younger ages,” says
Jesse Slome, the association’s executive director. In 2008, 53 percent of
individual buyers were 55-64, compared to 50 percent in 2007. Another
24 percent were 45-54 in 2008. “The age of buyers keeps dropping as
consumers—especially Baby Boomers—understand the cost-saving benefits of locking in good health discounts and ways to make protection more
affordable,” Slome says. In 2000, the average age of LTCI buyers was 67.
About three-fourths (76 percent) of buyers in 2008 opted for coverage for five years or less, compared to 71 percent in 2007. “The most
expensive long-term-care insurance policy is one with an unlimited benefit
period,” Slome says. “Consumers are right-sizing their protection, taking
into account available savings and retirement income. This cost-sharing
approach can reduce the cost of protection by 30 percent or more.”
Average premiums paid in 2008 were $1,650 for ages 35-44, $1,900
for ages 45-54, $2,150 for ages 55-64 and $3,350 for ages 65 and
older, according to the association.
For more information, go to
www.aaltci.org. ;
Underwriting •
Postponement
Shift in Employee Benefits
Fear of Needles •
Petersen
800.345.8816
piu@piu.org • www.piu.org
A new study, A Subtle Shift: Examining Employee Benefits in the Midst of Economic Uncertainty, can
provide key information for group insurance carriers,
health-care companies and retirement-plan administrators facing the next
open enrollment season, according to LIMRA, which conducted the study.
The report shows that:
■ Employers have not dropped group insurance, health care or retirement
benefits yet partly because the most severe economic turbulence hit
last fall while open enrollments were in progress.
■ Most employers aren’t planning to drop benefits in the next year, but
they’re not adding benefits either.
■ Unless the economy improves, employers are likely to make drastic cuts
to their benefit offerings.
LIMRA plans to follow up with employers later this year. For more information, go to
www.limra.com. ;
