Who Is Buying Long-Term Care Insurance?
What you would say if I told you younger people are buying more LTCI than older people. The trends are telling us younger people are buying LTCI. According to the American Association for Long Term Care Insurance, 26% of LTCI policies are sold to people age 45 to 54.
Many people who purchase LTCI policies understand the importance of having coverage because they are currently taking care of their aging parents while trying to raise their own families. Young people know the benefits of LTCI and don’t want to put the burden of being a caregiver on their own children.
The premium for LTCI is based on the applicant’s age. This means that the younger they purchase a policy, the less they will pay. Although they may pay for a longer period of time, it is generally less expensive than waiting to buy.
Younger buyers know that if their health were to change tomorrow, they might not be able to purchase LTCI at any price. Buying the policy while young and in good health not only eliminates the concern about future insurability, it may cost less considering younger people have a better chance of qualifying for good health discounts.