Recent studies are indicating that the average age for consumers who purchase long-term care insurance is continuing to drop year after year. I can certainly agree with this as I have observed more interest in long-term care being shown by folks in their mid-forties and early fifties.

There is also a trend to lower long-term care insurance premiums by choosing to co-insure a portion of facility care costs if that should become necessary. Since so much care is provided either at home or in an assisted living facility these days this kind of strategy can be a smart choice. This is because there is often some income that has been used for daily life outside the nursing facility that can often be redirected to help pay for nursing facility costs without dipping into vital retirement assets.

Here is the results of a recent study that comments on these trends:

“The American Association for Long-Term Care Insurance says survey findings show that more younger people are buying long term care insurance due to the more affordable cost-sharing approach of LTC insurance.

Some 400,000 individuals purchased long-term care insurance protection in 2008 according to a just-released report. The overwhelming majority (84%) of individual buyers in 2008 were younger than age 65 and three-fourths (76%) selected a more affordable approach to this protection by opting for coverage for a specific number of years.

The annual study conducted by the American Association for Long-Term Care Insurance, the industry’s professional trade organization, analyzed data on 215,000 buyers of individual long-term care insurance protection. According to the organization’s research, some 8.2 million Americans now have long-term care insurance protection purchased on an individual basis (typically through an insurance professional) or through a plan offered by their employer.

“Individuals continue to purchase protection at younger ages,” explains Jesse Slome, the Association’s Executive Director. In 2008, some 53% of individual buyers were between ages 55 and 64; compared to 50% the prior year. Another 24% were between ages 45 and 54 (2008). “The age of buyers keeps dropping as consumers — especially baby boomers — understand the cost-saving benefits of locking in good health discounts and ways to make protection more affordable,” Slome explains. In 2000, the average age of an individual buying long-term care insurance was 67.

The number of individuals purchasing long-term care insurance protection for a specified number of years also increased according to the Association study. Just over three-fourths (76%) of buyers in 2008 opted for coverage for a claim lasting five years or less; a slight increase over the prior year (71%). “The most expensive long-term care insurance policy is one with an unlimited benefit period (one with no cap on the number of years benefits will be received),” Slome explains. “Consumers are right-sizing their protection taking into account available savings and retirement income. This cost-sharing approach can reduce the cost of protection by 30 percent or more.” ”

You can read the rest of the article here.