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The right time to get long-term care insurance

Often, those who want long-term care think about the cost of such services when they need them. That often leads to great sticker success. According to Genworth Financial, Inc. (GNW), which sells long-term care insurance, the average cost of a private nursing home in the United States is more than $ 77,000 a year.


For many older adults, long-term care insurance is the right option to consider. It may not make sense to those who are above income, or who are rich enough to finance their own or eligible for Medicaid. But for the average, measuring the pros and cons of these policies is a great use.


If you conclude that long-term care insurance makes sense to you, time is important. Those who sign up too late may be charged with higher premiums or, worse, they may not qualify for the policy. On the other hand, registering too soon can let you pay for many years of premiums before you need attention.

The right time to buy
The American Association for Long Term Care Insurance (AALTCI) recommends that people adopt the policy at age 50. That may seem premature, considering the large number of claims that occur when people are between 70 and 80 years old. The organization argues that even those who participate can be disqualified if their health is reduced.

While the Low Price Health Care Act prohibits traditional health insurers from excluding consumers based on existing health conditions, the bill does not include long-term care policies. When people need help with activities such as bathing or dressing, or conditions such as Alzheimer's disease and Parkinson's disease, they may be overwhelmed by high premiums or their rejected application. According to the AALTCI, approximately 23% of 60-year-old applicants were denied consideration, while only 14% of 50-year-olds were denied.

Only the highest rates
Another reason for the company about long-term care insurance is that premiums related to age. Each time 50-year-olds reach a new birthday, premiums charged each year increase by 2% -4%. As soon as they reach 60, premiums increase to 6-8% each year.

For the same amount of coverage, a person who waits up to 65 to buy a policy may be charged more than double the premiums paid by the person who bought his plan at age 55. If a consumer is like most Americans, they will not file a claim until they are at least 80 years old. Even with an additional 10 years of premiums, buying insurance at age 55 can save you a lot of money in the long run.

Consider property protection
If you are buying in the mid-50s, you are probably paying more than twenty years before filing a claim. But due to inflation, the amount of coverage you buy may not be as high as it is today.

Imagine that someone buys a $ 150,000 policy and does not need it for 20 years. If the costs of long-term care increase by 3% per year on average, the insurer provides an equivalent of $ 83,051 in protection.

Fortunately, many current policies come with economic protection. The amount of benefits grows either by a fixed annual rate or composed of a certain percentage each year. Naturally, you will pay more in premiums to get this additional benefit. But if you are concerned about the low level of protection when you reach your age, it would be a worthwhile sacrifice.

Bottom line
If you decide that long-term care insurance is the best way to prepare for your long-term care needs, there are benefits when you buy it before you reach 60. It will not only increase your chances of being approved, but you will also get it at a lower price, in many cases. Keep in mind that the above circumstances may also affect your ability to obtain coverage, as well as your costs.
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