STUDY REVEALS BENEFIT OF APPLYING FOR LTCi AT YOUNGER AGES
February 22, 2006

A new report reveals an important reason for individuals to consider ways to finance potential long-term health care needs while in their 50s. The study conducted by the American Association for Long-Term Care Insurance (AALTCI) examined the percentage of long-term care insurance applicants who qualify for preferred health discounts.

"Individuals who are in good health qualify for discounts that reduce the cost of long-term care insurance by 10 to 20 percent each year," explains Jesse Slome, AALTCI Executive Director. "The savings can amount to hundreds of dollars a year for a couple."

The study examined data provided by eight leading long-term care insurers that represent some 80 percent of new individual policies sold in the U.S. "Consumers understand the risk of needing long-term care at some point in their life as they age," Slome notes. "But people often wait too long to plan. Individuals don't realize that a simple change in their health can cause one to pay more for insurance protection or make you completely ineligible for coverage at any price."

The study of 2005 long-term care insurance policy applicants found that the percentage of applicants between 50 and 59 who qualify for good health discounts ranged from 42 to 58 percent. The findings reveal that the percentage who qualify for good health discounts drops for those in their 60s and even more significantly for those who wait to apply until their 70s.

"When it comes to long-term care insurance, there are two important facts consumers need to know," Slome stressed. "First, it's smart to start investigating options when you are still in good health - which generally is your 50s. If your health is less than perfect, it pays to get information from a long-term care specialist who understands which health conditions various insurers will accept. Once you are declined coverage by one insurer, you may find it impossible to get coverage."

Percentage of Applicants Who Qualify For Good Health Discounts

Under Age 30 - 66.5%

Between 30 to 39 - 61.0%

Between 40 to 49 - 53.7%

Between 50 to 59 - 44.2%

Between 60 to 69 - 31.9%

Between 70 to 79 - 18.8%

80 and Over - 11.2%