Women Lead Life Insurance + Long-Term Care Policy Sales
Author: American Association for Long-Term Care Insurance
Published: 2011/05/31 - Updated: 2026/01/29
Publication Type: Informative
Category Topic: Life Insurance - Related Publications
Page Content: Synopsis - Introduction - Main - Insights, Updates
Synopsis: This report presents industry data from the American Association for Long-Term Care Insurance showing that hybrid life insurance policies offering long-term care benefits experienced a 79 percent sales increase in 2010, with women comprising over 60 percent of purchasers. The information is authoritative because it comes directly from a national trade organization's annual research study and includes specific demographic breakdowns and purchasing patterns. This data proves particularly useful for seniors and people with disabilities who are planning for potential long-term care needs, as these hybrid policies address a common concern - what happens if care is never needed - by ensuring beneficiaries receive death benefits when long-term care benefits go unused. The research reveals that most buyers were between ages 55 and 74, with policy face amounts typically exceeding $100,000, providing practical benchmarks for those considering similar coverage options - Disabled World (DW).
Introduction
Long-term care insurance protection can be purchased within a life insurance policy and sales surged in 2010 according to a new study released by the American Association for Long-Term Care Insurance.
Sales in 2010 of life insurance policies offering long-term care benefits surged 79 percent for the industry's leading insurance carriers.
Main Content
According to annual research conducted by the American Association for Long-Term Care Insurance www.aaltci.org women comprised just over 60 percent of new buyers the study found.
"Linked life insurance policies that offer long-term care benefits experienced significant growth in 2010," states Jesse Slome, the national trade organization's executive director. "Consumers are finding these products offer a significant advantage when it comes to long-term care planning."
Newer life insurance policies offer the ability for the policyholder to access funds should a need for long-term care occur.
"For those with sufficient savings to purchase coverage, these new forms of protection help overcome the what if I don't need long-term care," Slome explains.
If the policy benefits are not used for long-term care, the designated beneficiaries receive the death benefit.
According to data published in the Association's 2011 Long-Term Care Insurance Sourcebook, over one-third (34%) of women who purchased new life+LTC policies in 2010 were between ages 55 and 64. Nearly 40 percent were between ages 65 and 74. Male purchasers tended to be slightly older Slome acknowledged.
"You need to have a fair amount of savings or what I call lazy money," Slome explains. "Lazy money consists of funds sitting in low-paying Certificates of Deposit that can be easily put to far better use on your behalf."
The single premium face amount of just over two-thirds of new policies purchased in 2010 was over $100,000. About a quarter of buyers opted for a face amount of over $200,000.
The complete findings are published in the Association's 2011 Long-Term Care Insurance Sourcebook that can be obtained from any of the organizations 3,000 members. Slome advises consumers considering long-term care insurance to carefully compare coverage with a knowledgeable professional.
"Costs for virtually identical coverage can vary by as much as 40-to-60 percent," he warns.
The American Association for Long-Term Care Insurance is a trade organization.
Insights, Analysis, and Developments
Editorial Note: The rise of hybrid life insurance products reflects a fundamental shift in how Americans approach long-term care planning, moving away from traditional "use it or lose it" long-term care policies toward more flexible financial instruments. These combination policies address what Jesse Slome aptly calls the psychological barrier of paying premiums for coverage that might never be used - a concern that has historically deterred many from securing any protection at all. What makes this trend particularly significant is the strong preference among women buyers, who not only live longer on average but also more frequently become caregivers themselves, suggesting a greater awareness of long-term care realities. As healthcare costs continue rising and family structures evolve, these hybrid products may represent not just a clever insurance innovation but a practical solution for middle-class families seeking to protect both their financial legacies and their dignity in later years - Disabled World (DW).Attribution/Source(s): This quality-reviewed publication was selected for publishing by the editors of Disabled World (DW) due to its relevance to the disability community. Originally authored by American Association for Long-Term Care Insurance and published on 2011/05/31, this content may have been edited for style, clarity, or brevity.