“Why is the average age of new Policy-purchasers much younger in the last 10 years?”

As an industry, we are experiencing many in their 40′s and 50′s that are securing their long-term care coverage. In the 1990’s many were in their 70’s trying to secure their LTC protection.

Why are more making this decision at younger ages? There are several reasons that they consider, and you should to:

1. Often times, ‘preferred’ rates apply to healthy, younger people, thereby giving them an additional 15% discount on premiums! The underwriting requirements for 60 to 70 year-olds is much stricter than 15 years ago, with a higher frequency of declines or ‘sub-standard’ ratings due to health reasons. Younger Baby Boomers are reading the reports and becoming educated about the trends in health ratings.
2. As younger Baby Boomers study and educate themselves on financial principles, they are studying the health trends that are going on, and realizing that they have to take their retirement planning into their own hands. With people living longer, this increases the risk of someone having a LTC expense, which can be devastating to retirement portfolio. Transferring risk from their retirement portfolio is making financial sense, and giving them independence that they are accustomed to.
3. Younger Baby Boomers are taking advantage of their Employer offerings and finding that option to be viable and affordable with the discounts and “relaxed medical underwriting”.
4. The uncertainties of the government health reforms and the possibility of future inflation make LTC protection attractive to maintain independence as well as “risk-manage” future needs with current, inexpensive premiums. In addition, many States are undertaking the LTC Partnership Act, which shows the state governments getting involved in making sure that you look at the coverage options earlier than later.
5. The biggest reason that younger Baby Boomers are securing their LTC coverage is the cost-allocation of 40 years of premiums starting at age 40, versus 20 years of premiums starting at age 60! Have you considered the trend? When the analysis is done, it is amazing on the $100-200,000 cost difference by waiting until age 60, and risking your insurability.

Simply LTC Benefits is committed to providing the latest information and trends relating to “protection planning” involving LTC expenses within your retirement planning. We work with your Financial Advisor to make sure you are fully getting the best value around personalized planning.

Together, we explore your health options to see what is available, and then consider the different LTC program tools that might be appropriate for your situation. Within a few minutes, you find answers to your questions! We are able to run some scenarios for you to consider, and then you decide if transferring this risk is something you wish to do now…. Or wait until a crisis.

With so much changing for retirement planning, wouldn’t you rather speak to a LTC Specialist?