Long-Term Care Insurance Policy

Most people think about purchasing long-term care insurance when they get into their 50s, or even their 60s or 70s. But if you purchase a plan when you are in your 40s you can enjoy significant savings on your premium, and even more if you purchase at an even younger age.

Long-term care insurance provides coverage for nursing-home care, home-health care, personal or adult day care for individuals age 65 or older or with a chronic or disabling condition that needs constant supervision. It offers more flexibility and options than many public assistance programs.

Full home-care coverage is an option for LTC insurance and will pay for home care from the first day it is needed. It will cover expenses for a visiting or live-in caregiver, companion, housekeeper, therapist or private-duty nurse up to seven days a week, 24 hours per day ― up to the policy benefit maximum.

People who are in good health typically qualify for discounts that can decrease the cost of long-term care insurance by more than 30%. This means that a couple can save hundreds of dollars annually for the protection they need.

The younger the better

LTC insurance discounts get smaller and smaller the older we are. Here’s what a recent study found in terms of discounts for different age brackets:

  • Under age 30: 66.5%
  • Between 30 and 39: 61%
  • Between 40 and 49: 53.7%
  • Between 50 and 59: 44.2%
  • Between 60 and 69: 31.9%
  • Between 70 and 79: 18.8%
  • 80 and over: 11.2%

People understand they will need long-term care at some point in their life. However, they often wait too long to plan for that eventuality. This failure to plan causes them to purchase LTC coverage late in life and they end up paying a much higher premium as a result.

Most fail to realize that changes in their health can result in higher premiums for LTC insurance, or make them ineligible for coverage at all.

Many experts suggest shopping for LTC insurance between the ages of 45 and 55, as part of an overall retirement plan to protect assets from the high costs and burdens of extended health care.

If possible, you should begin investigating long-term care insurance options while you are still in good health, in order to maximize the premium discounts.

Those with less than perfect health should seek advice from a long-term care specialist who knows which health conditions various insurers will accept. Once you have been declined by one insurance company, you may find it impossible to obtain coverage from any insurer.

Call us for more information on LTC. We can help you decide which option is most suited to your circumstances.