More boomers buying long term care insurance

The age of long term care insurance purchasers continues to skew downward as more baby boomers buy policies, according to data released Wednesday by the American Association for Long-Term Care Insurance. During 2008, 53% of individual LTC insurance buyers were between the ages of 55 and 64 — up from 50% in 2007, according to poll data from the AALTCI of Westlake Village, Calif. The trade association had analyzed data on 215,000 purchasers of individual LTC coverage. In that age bracket, purchasers were paying an average of $2,150 in annual premiums. If they had waited until age 65, they would have paid an average of $3,350. Meanwhile, 24% of all buyers were in the 45- to 54-year-old bracket, down slightly from 26% in 2007. These boomers paid an average of $1,900 per year for coverage. Purchasers were also paying for more daily benefits. Thirty-five percent of the buyers bought $150 to $199 in daily benefits this year, up slightly from 33% in 2007. More individuals are also opting for definite-benefit periods for their coverage, with 76% of the LTC buyers opting for coverage spanning over five or fewer years, up from 71% in 2007. Sales of lifetime coverage — often the most expensive option for long-term care — decreased slightly: Just 13% of the individuals bought an unlimited LTC policy in 2008, compared with 18% in 2007.