There’s an optimal age for buying long-term care policies and it’s not too old and it’s not too young, says one Ontario expert
The annual cost of treating the 747,000 Canadians suffering with dementia is said to be $33 billion and heading higher prompting many to wonder how we’re going to pay for it.
Long-term care insurance is the simple answer but advisors are torn as to the optimal age group to sell such a policy. Some believe only those in their 50s are going to have the inclination, not to mention the money, to do so, while others say “the younger the better” because rates are going to be much lower.
“People I talk to in their 30s are too busy looking after little kids and buying a house and so on. Most of them do not have parents in their 60s or 70s,” LTC expert Karen Henderson told LHP. “My thinking and that of my colleagues is that the youngest sweet spot is 49 and above because these are people who are probably in an elder care situation [parents]; they’re more open to long-term care for themselves; they’re at the right age because they can still get a policy at a decent premium; and they’re healthy enough to qualify.”
Whatever the age it’s clear Canadians don’t own enough of it. In Japan, which has an even higher aging population than here in Canada, it has mandatory LTC insurance for those 40 and older.
But that doesn’t mean people who are younger than 49 aren’t good candidates for LTC insurance because you never know what their experiences have been with elder care issues.
“[LTC insurance] It’s available down to age 18 and while I’ll agree that 18 is young I think the key is: ‘Have you ever seen it in someone in your family or someone you know?’” said Montreal living benefits specialist Tim Landry. “Rather than going with a number, say 40 or 45, or whatever, get that key question [answered]. My easiest sale was a young caregiver who’s seen it [long-term elder care] in her work.”
“It’s not the age, it’s have you seen it,” said Landry.
Long-term care insurance is the simple answer but advisors are torn as to the optimal age group to sell such a policy. Some believe only those in their 50s are going to have the inclination, not to mention the money, to do so, while others say “the younger the better” because rates are going to be much lower.
“People I talk to in their 30s are too busy looking after little kids and buying a house and so on. Most of them do not have parents in their 60s or 70s,” LTC expert Karen Henderson told LHP. “My thinking and that of my colleagues is that the youngest sweet spot is 49 and above because these are people who are probably in an elder care situation [parents]; they’re more open to long-term care for themselves; they’re at the right age because they can still get a policy at a decent premium; and they’re healthy enough to qualify.”
Whatever the age it’s clear Canadians don’t own enough of it. In Japan, which has an even higher aging population than here in Canada, it has mandatory LTC insurance for those 40 and older.
But that doesn’t mean people who are younger than 49 aren’t good candidates for LTC insurance because you never know what their experiences have been with elder care issues.
“[LTC insurance] It’s available down to age 18 and while I’ll agree that 18 is young I think the key is: ‘Have you ever seen it in someone in your family or someone you know?’” said Montreal living benefits specialist Tim Landry. “Rather than going with a number, say 40 or 45, or whatever, get that key question [answered]. My easiest sale was a young caregiver who’s seen it [long-term elder care] in her work.”
“It’s not the age, it’s have you seen it,” said Landry.
