AS LONG TERM CARE insurance policies are getting better and people are getting the message that LTCI isn't just nursing home coverage, the average age of the people buying policies in the group market continues to fall. According to Unum, 52 percent of buyers are 45 or younger. That means young baby boomers and maybe some older members of Generation X are getting better educated about long term care.
Unum also found that new purchasers of LTCI are interested in receiving their care at home instead of moving to a nursing home or assisted living facility. Ninety-two percent of policies sold by Unum in the group market include a home health care option, up from 88 percent just four years ago.
Employers are getting in on the act, too, as they are now more willing to pay for part of the premium. More than 90 percent of Unum's cases in 2006 had at least some premium contribution from the employer. Women account for 52 percent of the buyers, slightly outpacing men, and the coverage amounts have risen -- the $5,000-$6,000 monthly benefit saw a 2 percent jump. The industries that represent the most growth are mostly white collar: insurance brokerages, law firms, engineering firms, physicians and management consulting services.
"The sales growth in this market is based on two things: better information available to employees on the need for long term care, and simplified and more affordable policies from carriers," said John Noble, Unum's director of long term care products.
