People approaching retirement are still good prospects for long-term care insurance. According to the American Association for Long-Term Care Insurance (AALTCI), more than half of the people who purchase a policy are between the ages of 55 and 64. But there's also a growing market of even younger buyers. Twenty-six percent of policies are sold to people age 45 to 54.
What's prompting younger people to buy something they may not use for 20 or 30 years?
Personal Experience — Many people who purchase LTCi at a younger age are members of the "sandwich generation" — people struggling to care for aging parents while raising their own families. Being caught in the middle gives them firsthand knowledge of just how difficult being a caregiver can be. And they don’t want that for their own kids.
Cost of Premium — The premium for LTCi is based on the applicant's age. That means younger buyers pay less. And even though they may pay for a longer period of time, it’s generally less expensive than waiting to buy. In addition, no one knows when the need for long-term care services will arise. So buying young means they'll have coverage in place no matter when it's needed.
Future Insurability — Younger buyers know that if their health were to change tomorrow, they may not be able to purchase LTCi at any price. Buying it while they're young and in good health not only eliminates the concern about future insurability, it also may cost less since younger people have a better chance of qualifying for good-health discounts.
Pragmatism — The truth is an accident or prolonged illness can happen to anyone at any age. Today's advances in medicine are saving the lives of people with catastrophic conditions like head injuries, heart attacks and strokes. However, these people still may need months or years of care. And the best way to help pay the bills for LTC services is with an LTCi policy.
So when you're trying to find prospective clients for LTCi, don't overlook people in their 40s and 50s. And don't forget that you can offer them another important reason to buy — confidence. People who purchase a product they may not use for a decade or more need to know the company will be there when they make a claim. Mutual of Omaha has been keeping this promise to policyholders for over 100 years. Even in today's uncertain economy, we continue to earn high industry ratings for financial strength and stability. Isn't that the kind of company your clients are looking for?