The question was: Despite growing interest in settling policies held by insureds younger than age 65, the target age group for settlements is still ages 65-70 and up. In 1995, this age group represented approximately 12.8% of the U.S population, according to the Census Bureau. Roughly what proportion of the U.S. population is this age group expected to represent by year 2025?

 

a) 10%
b) 12%
c) 15%
d) 18%
e) 21%

The answer is: d) people age 65 and up, the target market for most life settlements, will represent roughly 18.5% of the U.S. population by year 2025, according to data from a Census Bureau projection made in 1996. Many demographers describe this segment of the population as the fastest-growing age group.

 

Here are the projections from the Census Bureau:

 

Year and                       Under 20     20-64     65 years +
 region             Totals        years       years         

1995                --------      --------     --------    --------
United States  100.0        28.8         58.4        12.8
Northeast          100.0        26.9         58.9        14.2
Midwest             100.0        29.0         57.9        13.1
South                100.0        28.8         58.5        12.7
West                 100.0        30.4         58.3        11.3

 

2010
United States  100.0        27.4         59.4         13.2
Northeast          100.0        26.2         60.1         13.7
Midwest             100.0        26.9         59.5         13.6
South                100.0        26.6         59.6         13.8
West                 100.0        29.8         58.5         11.7

 

2025
United States  100.0       26.8        54.7        18.5
Northeast          100.0        25.8         56.0         18.2
Midwest             100.0        26.1         54.8         19.1
South                100.0        25.3         54.7         20.0
West                 100.0        29.9         54.0         16.1