When is the Best Time to Purchase Long Term Care Insurance?

If you decide that long-term care insurance is the right decision to protect your assets and your family’s financial future, the best time to buy it is now, because the older you get, the more expensive the policy becomes in the long run. By buying now:

1) You avoid the risk of needing care that you will have to pay for out-of-pocket.
2) You avoid the risk of developing a condition that would make you uninsurable later.
3)You pay lower premiums now, rather than paying higher premiums later.

The sample table below shows, for a 44-year old male, the cost of waiting and buying Long-term care insurance later, assuming that premiums do not change and the applicant remains insurable. The Daily Benefit is increased 5% for each year of waiting, to cover the increased cost of care over time.

Age at Purchase

Daily Benefit

Premium

Premiums Paid to Age 90

Cost of Waiting

44

$200

$1,598

$73,508

$0

46

$221

$1,893

$83,292

$9,784

48

$243

$2,232

$93,730

$20,222

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About Evan H Farr, CELA, CAP

Evan H. Farr is a 4-time Best-Selling author in the field of Elder Law and Estate Planning. In addition to being one of approximately 500 Certified Elder Law Attorneys in the Country, Evan is one of approximately 100 members of the Council of Advanced Practitioners of the National Academy of Elder Law Attorneys and is a Charter Member of the Academy of Special Needs Planners.

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