Why are buyers of long-term care insurance getting younger?

The answer seems to be to avoid ‘pre-conditions that might limit their cover later in life.

A report from one major insurance supermarket reveals the average age of the long term care insurance buyer was:

  • 67.3 years old in 1999
  • 63.2 years old in 2006, a drop of 6.09%
  • 56.1 years old by 2013. A 21.09% drop! As of June 2013, the average buyer of long term care insurance is aged 53.1. The youngest average age recorded.

The data comes from LTC Tree, a long term care insurance “supermarket,”. They may have vested interest in promoting this observation however, they analysed more than 53,000 cases from 1999 to 2013 to find the mean change in the buyer’s age.

The reason for the drop in age? Health.

Stricter underwriting guidelines are resulting in an increase in younger, healthier buyers in their 40s and 50s who are much more likely to be approved than someone in their 60s or 70s. Medications and chronic conditions only worsen acceptance chance, and the likelihood of those two things increases with age.

Furthermore and very interestingly, these younger buyers are seeing their parents develop conditions that lead to long term care services, so naturally, they are learning first hand how important it is to buy this type of insurance early.

Singapore Government’s MoneyWise website has a depressingly clear explanation of Long Term Care insurance here.