Today’s Long Term Care Insurance Buyer

America’s Health Insurance Plans (AHIP) published a study two years ago, tracking long-term care insurance (LTC) buyers between 1990 and 2010. They also compared buyers with the general population.

Although most assisted living communities and home care agencies mention LTC insurance as a means to pay for their services, few people buy it.

For those interested in purchasing LTC insurance, fewer companies are providing it.

The study categorized its key findings into demography, type of policy purchased and opinions about government’s role in long-term care.

Demographics:

  • The average age of the individual buyer declined from 68 in 1990 to 59 in 2010.
  • The average buyer is younger, better educated, more likely to live in a household where someone works, and have greater income and assets than someone who doesn’t buy LTC.
  • “Planners” are much more apt to buy LTC than “non-planners.”

Type of policy purchased:

  • Comprehensive policies increased to 95% of all polices purchased in 2010.
  • 99% of policies  in 2010 covered home care.
  • 75% of all policies in 2010 had inflation protection and 50% had compound inflation protection.

Opinions:

  • The vast majority of those over 50 believe the federal government should encourage the purchase of private LTC insurance by making premiums fully tax-deductible.
  • Most Americans don’t believe it’s the government’s role to pay for everyone’s long-term care.
  • Non-buyers of LTC are more likely to underestimate the cost of long-term care than buyers and also believe they’ll be less likely to need long-term care.
  • Non-buyers are more likely to believe that government programs will cover care needs than those who buy insurance.

One thought on “Today’s Long Term Care Insurance Buyer

  1. Pingback: Does Long Term Care Ins Have a Future? | Senior Care stuff

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