John M. Bragg, FSA
Geoffery Crofts, FSA
Faye Albert, FSA                          

Harold I. Cohen, FSA

   Bragg Associates Actuaries
   

      

 

 

Bragg Associates Health Expectancy


A Marketing Approach - Highlight the 3 Periods - Focus on Planning

In your forties or fifties, what would change in your planning if you knew you had a significant probability of living to an advanced age - even beyond age 90? What if you also knew what portion of your remaining lifetime would be healthy years? Your first response might include some of the following:

I need to change some habits and alter my lifestyle;  have more energy and stamina.  I want to  maximize the years that I am healthy!
Making a list of what I really want to accomplish and experience would be exciting. Maybe I have 20 or 30 years yet to dedicate to  some productive venture.
With that much time ahead, education and culture have new possibilities. Does full retirement make sense or should I consider a phased approach?
Paying off the mortgage may not make as much sense now

Once you are informed of your outlook for a healthy life ahead, how can you be sure of your financial health for those years? Financial issues must be reviewed with a longer time horizon: for life insurance - biased toward permanent products - some form of long term care, annuities, supplemental health coverages. Will that insurance company, bank or broker be around, and, if not, who will be honoring our agreement and on what terms? Are my premium rates going to increase beyond affordability? With the adoption of the first new mortality table in over 20 years, now is the time to draw attention to all the opportunities and options for living well for decades to come. Choices now bring even greater rewards for personal satisfaction and financial security.

Sample Health Expectancy Display

Additional Detail


People With No Known Medical Impairments

                                           Age 45

Age 55 Age 65

Age 75

  M-NS F-NS M-S F-S   M-NS F-NS M-S

F-S

  M-NS F-NS M-S F-S   M-NS F-NS M-S F-S
Years Healthy 32.4 32.1 23.5 23.1   23.9 23.6 16.2 15.7   16.6 16.3 10.7 10.1   10.5 10.6

6.8

6.4

Years Assisted Living 5.3 5.3 5.8 5.5   4.8 4.7 5.2 4.9   3.9 3.9 4.2 3.9   2.7 2.8

3.0

2.7

Years Skilled Nursing 2.5 5.0 2.7 6.5   2.3 4.5 2.4 5.9   2.0 3.8 2.1 4.9   1.6 2.9

1.6

3.6

Life Expectancy Age 85 87 79 80   86 88 79 81   88 89 82 84   90 91

86

88

50% Probability of  Living Past Age 87 90 77 81   88 90 80 82   89 90 81 84   90 91

86

87

% of People Healthy at That Age 69% 61% 62% 51%   68% 61% 60% 50%   67% 61% 60% 49%   66% 60%

56%

46%

Note: The above examples are illustrative only and are not applicable or appropriate for any actual individual.

David G. W. Bragg
Copyright 2006 John M. Bragg and Associates, Inc. All rights reserved.                                                   
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Revised: 06/15/10.