Ages when individuals purchased long-term care insurance dropped in 2021 according to Jesse Slome, director of the American Association for Long-Term Care Insurance.

"The change can be fully attributed to the fact that younger people in the State of Washington applied in record numbers in order to avoid the new state-imposed tax that is still projected to be imposed," explains Slome.  "This does not change our emphasis that the sweet spot for looking into long-term care insurance is between ages 55 and 65."

According to Slome, some 21% of individuals who purchased traditional long-term care insurance in 2021 were age 39 or younger.  "This is significantly higher than prior years when only 3 or 4 percent of buyers were under 40," Slome notes.  The data comes from Association analysis of industry data and the just released 2022 Milliman LTC Survey.

Sales of traditional long-term care insurance tripled in 2021 with the growth attributable to the State of Washington initiative. "We fielded so many calls from people in their 30s who faced paying between $1,500 and $2,000 in added taxes," Slome explains. "They could buy long-term care insurance protection for far less and that is indeed what many of them chose to do. Now everyone is waiting to see how the State program ultimately rolls out."

"The sweet spot for long-term care insurance planning is between ages 55 and 65," Slome suggests. "And waiting until your 70s greatly diminishes your opportunities of finding or being accepted for coverage although there are increasing options with linked-benefit and even short-term care policies which can accept applicants well into their 80s."

In prior years the Association noted that more than half of new applicants were between ages 55 and 64. "In 2020, 54% of applicants fell into this age band and that percentage has been fairly consistent for many years." Slome reports.

To access the latest long-term care insurance statistics including the decline rates starting at age 40, go to https://www.aaltci.org/ltcfacts-2022.php

The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of long-term care planning and supports insurance professionals who market both traditional and hybrid long-term care solutions.  To access information, go to https://www.aaltci.org or call the organization at 818-597-3227.