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There are some financial decisions you will need to make as you plan for retirement. One of the most important of these decisions is whether or not to do it purchase a long-term care insurance policy. Most people age 65 and older will need some form of long-term care. And since this care can cost over $100,000 per yearif you don’t plan for it, it can have a detrimental effect on your quality of life after retirement.
Although a long-term care insurance policy can help you plan for those expenses, there is better times to buy a policy and other times when you should look elsewhere. Below we will break three times to buy this unique insurance form and three times not to buy.
Learn more about your long-term care insurance options today.
3 Times to Buy Long-Term Care Insurance (and 3 Times Not to)
Here are three ideal times to buy a long-term care insurance policy and three other times to consider alternatives.
3 times to buy long term care insurance
Here are three times buying a long-term care insurance policy is probably a good idea:
When you’re young
Long-term care insurance is usually less expensive for younger applicants. This is because long-term care insurance providers must take into account the risk that you will make a claim when pricing your policy.
“The earlier long-term care insurance is purchased, the lower the cost and the better coverage included,” explains Dr. Afiq Gal, co-founder and president of Assured Allies, a financial services and insurance firm that helps of elderly people. “Long-term care plans are given at lower prices to younger and generally healthier people because they are less likely to need benefits soon.”
Don’t wait too long to buy coverage. Compare your long-term care insurance options now.
When you want to age at home
Some long-term care insurance policies may limit your coverage if you don’t move into a nursing home or assisted living community. But this is not always the case. some policies make aging at home easier with coverage for things like family caregivers and day care services for adults.
When you are healthy
The healthier you are, the longer it will likely be before you experience an event that causes the need for long-term care. So, long-term care insurance premiums are usually lower when you are healthy. But good health in the future is not promised. Therefore, it may be a good idea to lock in coverage now if you are healthy.
3 times not to buy long term care insurance
While there are times when it makes sense to purchase long-term care insurance, there are also times when you may want to consider other options. Here are three times you might want to look for alternative solutions.
When you already need care
“Consumers should not wait to purchase long-term care insurance until it is needed, because they will have a very high chance of being turned down by insurance carriers,” says Dr. Gall. So if you already need care, you may need to consider other ways to cover the cost of that care.
When you are over 70 years old
There is no specific age that disqualifies you from accessing coverage. However, “long-term care insurance becomes very expensive past age 70,” explains Bill Comfort, director of training at Certification for Long-Term Care. “So balancing a significant — even smaller — benefit against the premium price is much more difficult.”
Considering the fact that long-term care insurance gets harder to qualify for and more expensive the older you get, you may be better served by other options if you’re over 70.
When you are financially secure
Long-term care is a common need. But, you may already have the necessary financial assets to take care of that need if and when it arises. If you are financially secure and have already planned for the additional care costs you may face in retirement, long-term care insurance premiums may not be worth the cost.
Make sure you have access to the care you may need with a long-term care insurance policy now.
The bottom row
Long-term care insurance is an important product that can help many plan for the care they may need in the future. But there are times when buying a policy does – and doesn’t – make sense. While it’s probably a smart idea to buy coverage when you’re young and healthy, it may not be a good idea to buy a long-term care insurance policy if you already need care or are over 70 years old. Consider how coverage fits into your unique retirement and financial plans. And if you’re not sure whether or not you should purchase a policy, contact an expert for help today.
Joshua Rodriguez
