1 in 5 LTC INSURANCE APPLICANTS ARE DECLINED
March 8, 2005

Consumers are not aware of the need to "Health Qualify" for long-term care insurance notes an AALTCI report in Sales Strategies magazine.   More than half (57.2 percent) of individuals who apply for long-term care insurance after their 80 th birthday are declined coverage according to a just-published study.

More than half (57.2 percent) of individuals who apply for long-term care insurance after their 80 th birthday are declined coverage according to a just-published national study reported in the January/February edition of Long-Term Care Insurance Sales Strategies magazine.

"Nationwide, some one in five (19.2 percent) individuals who took the time to apply for long-term care insurance coverage was declined," explains Jesse Slome, Director of the American Association for Long-Term Care Insurance.   "Consumers clearly understand the need and value of long-term care insurance.   But they are not aware of the need to 'health qualify' for this protection and increasingly many wait too long to begin the application process."

The industry study, conducted by Wakely Actuarial Services, examined over 100,000 long-term care insurance applications submitted during 2003 and 2004.   "At older ages, the percentage of applications declined was significantly higher," Slome notes.   "Only one in 10 (10.7 percent) applicants who were between ages 50 and 59 were declined coverage."

The percentage of policies declined also increased when compared to a prior study performed for Sales Strategies magazine.   "The American public today has a greater understanding of the risk of needing long-term care but consumers have not been told that insurance companies underwrite applicants to help avoid what can be very costly claims," Slome explains.   "Individuals need to understand that a change in your health can occur at any moment.   The change may not be life threatening but it could result in the loss of available discounted rates for those in good health.   Or you may not be able to get long-term care insurance protection at any price."

Sales Strategies magazine is the official magazine for members of the American Association for Long-Term Care Insurance.    To purchase the issue with this study, mail a payment for $20 to AALTCI   - January 2005; 3835 E. Thousand Oaks Blvd., Ste 336, Westlake Village, CA 91362 or call (818) 597-3227.