According to new research by the American Association for Long Term Care Insurance, universal life insurance policies with optional long term care insurance coverage are beginning to get more interest from consumers. “We are definitely seeing heightened interest among consumers with available savings that they can leverage to protect against the high costs associated with needing long term care,” explained Jesse Slome, executive Director of the American Association for Long-Term Care Insurance. “These policies are not for everyone and there can be significant differences between policies being offered today.”
Based on information from the study, more than half of the buyers of life insurance with long term care benefit option policies have been under the age of 65. Some companies are imposing age restrictions on the policies, which may be pushing down the age of the buyers. It’s also possible that more stockbrokers and financial planners are recommending these products to their younger clients. A growing number of companies are now offering life insurance policies that will be able to offer long term care benefits. “You used to have one or two major players but over the past few years several large insurance companies have introduced new products,” Slome noted. “Consumers have the misperception that all policies are identical but we see some important differences that can vary. The difference in future benefits can be quite significant.”
The study reports that 56 percent of buyers from 2012 were around the age of 64 or younger.
Does this mean that everyone should start considering life insurance with the option of long term care benefits? For many, this would be a promising option and might even allow them to combine their costs for coverage. It would be more affordable for those who are seeking to find long term care that would be able to be cost efficient without cutting into the costs that they incur for their other forms of coverage. Although this method of coverage hasn’t been tested too much in order to find out whether or not it’s the most profitable option to seniors, there are many who have invested in it at a fairly young age and are finding that reaping the rewards can be beneficial. It may pose a great alternative for those who are seeking a way to escape some of the higher costs associated with current long term care insurance coverage premiums.
Ultimately, men and women have to consider what their needs are when they are seeking to find insurance coverage. They need to think into the future and consider whether or not they’re going to need long term care insurance. For many who are uncertain but would like to ensure they have some form of coverage, having a life insurance policy that provides optional long term care insurance can be a convenient option to consider in order to help prepare for their future and may make them feel as if they’re not risking investing in something that they may not use, since most people will ultimately use a life insurance policy even if they don’t need long term care coverage.