Long Term Care Insurance and Boomers

Boomers Buying Long Term Care Coverage

By LAUREN VILLAGRAN

The average age of people buying long term care insurance benefits dropped below 60 for the first time after falling steadily for more than 10 years, a trade group said Monday.

A study by the American Association for Long Term Care Insurance showed that the average age of Americans buying insurance for home care and assisted living fell to 58 years old in 2007. The average age has been on the decline. It's down from an average of 61 years in 2005 and 69 years in 1995.

The trend reflects a growing awareness of the importance of planning for health care and retirement, said Jesse Siome, executive director of the group. More people have begun securing long term care insurance in their 50s because that decade is "the sweet spot for long term care planning," when insurance costs are generally lower, Siome said. Insurers have also begun offering products that evolve coverage over time, a move that has attracted more baby boomers, he said.

About 8 million Americans now have extended care benefits, according to the study. That's up slightly from a year ago and about 60 percent higher than in 2000, when fewer than 5 million people had benefits for long term care.

Because they live longer than men, women make up more than two-thirds of the claimants for benefits totaling $3.3 billion annually.

This year, 46 percent of buyers of long term care benefits were between ages 50 and 60, while nearly 40 percent were over 60. The remaining 14 percent were under age 50.