Some clients may hope that 85 is the new 65. They may bring in life insurance policies that can stay in force up to age 120.
But, in reality, most clients who use insurance-based long-term care planning strategies begin using the benefits by age 90.
The American Association for Long-Term Care Insurance has reported data on LTC claiming ages in an analysis of 2022 claim data for traditional long-term care insurance and data from one issuer, OneAmerica Financial, on new claim data for life insurance policies that provide LTC benefits.
The percentage of insureds filing claims by age 90 was 79% for holders of life-LTC combination coverage and 88% for users of stand-alone LTCI coverage.
What it means: Staying healthy and independent past age 90 is still difficult.
The claiming gap: AALTCI was not able to adjust the claiming age data for factors such as coverage amount, year of policy purchase or issuer-underwriting strategies.
But a comparison of overall claiming age data suggests that hybrid users may move into the last stage of life later than holders of stand-alone coverage.
