The average buyer of individual long-term care insurance in America is approximately 58 years old. This has dramatically decreased from the high 70’s only a decade ago. In the workplace (employer sponsored plans), the average age LTCi buyer is only 41 years old. Many employer sponsored programs, however, do not subsidize the cost of the plans. The advantage to the some employer sponsored plans is that they may offer “simplified underwriting” or even “guaranteed issue.” So, you still need to purchase the long-term care insurance policy.
Underwriting is a true concern in obtaining a long-term care insurance policy, let’s face it, if you don’t die, you live. And if you live, you get older, you get sicker and with modern medicine you are kept alive with some ailments. So, you will need long-term care insurance. The main impetus for coverage is the high cost of health care and the realization by many baby boomers that their basic health insurance and programs such as Medicare will not cover long-term care costs.