When to Buy Long Term Care Insurance
Start early for better, more affordable protection.
Long term care is expensive - even when it’s free. It can cost in dollars or in the wellbeing of the caregiver. Long term care insurance can help protect your savings and the loved ones that care for you. So how do you decide when to buy it?
Best Age to Buy Long Term Care Insurance
Protecting your family and your savings from long term care costs can be accomplished affordably as part of a lifelong retirement savings plan. Most people don’t realize that long term care benefits can be “stacked”. That means you can have more than one insurance policy that pays benefits for long term care and use them all when you need care.Build a Strong Foundation: Ages 30-40
During early earning years (ages 30-40), consider adding long term care benefits to plans such as life insurance designed to safely build a portion of your savings. By starting early, you’ll be able to take advantage of decades of growth with lower premiums. (SEE Blog “Retirement Savings By Age”) Being younger and healthier when you buy means lower premiums. Choose a fixed premium policy (premium that costs the same for a set term or the life of the policy) to lock in the lower premium for the rest of your life. This type of long term care protection creates a strong foundation to your overall financial plan. Add similar plans as your income increases. For example, if you have a spouse or children to protect, this is a good time to add life insurance focused on death benefits that keep the roof over their heads and some income. Consider a plan that includes fixed premiums and long term care benefits. Alternatively, look at a hybrid long term care insurance policy if your main focus is more long term care benefits.Boost Retirement Safety: Ages 50-59
Age 50+ is a great time to consider traditional long term care insurance. Traditional long term care insurance provides the most benefits for premium cost and is the easiest plan to add annual growth of the benefit. With retirement ahead of you, it’s time to re-evaluate your overall plan. If your long term care insurance is not yet up to your goal amount, traditional long term care insurance can be an affordable way to fill the gap. Make sure to buy a plan that will still be affordable when you are on a fixed income in retirement.No Time to Wait: Ages 60-69
By age 60+ many people begin to have health issues and diagnoses that may make insurance more expensive or, for some, not available. Premium rates begin to rise faster and faster with each passing year. If you don’t yet have long term care insurance, NOW is the right time to buy. Consider your whole financial picture before deciding how to fund a new long term care policy. A few examples of what to review:- Retirement date
- Available savings and investments
- Discretionary income (what can you afford to set aside) now and in retirement
- Other insurance that may be able to be converted to add long term care benefits
Limited Choices: Ages 70+
By age 70+ many people start making claims on their long term care insurance. It’s a challenging time in life to BUY long term care polices but at Retirement Safety Zone we specialize in alternative ways to pay for long term care. In fact, we have a range of insurance plans to choose from.- Plans with simple or no health questions
- Plans that provide lifetime income with long term care benefits
- Plans to help you qualify for Medicaid while protecting some savings
Next Steps:
For a complimentary review of your retirement savings goals, book a no-cost, no-commitment appointment. Gather the information you have available about insurance, investments, social security, CDs, etc for a more complete picture.
For a quick summary of how age affects when to buy long term care insurance, download the guide available below.
