Long-term care insurance is easier to qualify for – and usually more affordable – when you purchase your policy before major health changes happen. Many people begin seriously shopping for LTC policies in their 50s and early 60s, but the right time may be sooner.
The best age to buy LTC insurance depends on your health, budget, retirement goals, and family history. It’s never too early to start planning for your future care needs, and the sooner you start planning, the better prepared you will be.
Why Timing Matters With Long-Term Care Insurance
Long-term care insurance is medically underwritten, which means that not everyone will qualify for a policy. Most underwriters will take into account both your age and health when it comes to your eligibility and rates.
For example, those who apply in their 50s may be able to secure more favorable terms because their health conditions have not yet arisen. The same person who waits 10 years to secure a policy may develop a pre-existing condition that could disqualify them from long-term insurance coverage.
Timing matters, and waiting too long to seek LTC insurance can lead to higher premiums, fewer coverage options, or being declined if health issues develop.
What Is the Best Age to Buy LTC Insurance?
Generally speaking, most people begin to think about their long-term care plans in their 50s and early 60s. People are typically old enough to seriously plan for their retirement and future care costs, but they’re still young and healthy enough to have better odds of approval because they’ve yet to develop serious health concerns.
Below, find an overview of what to expect by age range when it comes to buying LTC insurance.
- In your 40s: You may be able to secure lower premiums; however, buyers could be paying for many years before you’re likely to need care.
- In your 50s: You are likely to experience a strong balance between affordability, health eligibility, and long-term planning. You can factor in long-term care needs at the top of your retirement planning.
- In your 60s: While still a common time to buy LTC insurance, you will start to experience higher premiums. Health changes can become a bigger factor in determining your eligibility, as many issues may emerge around this time. You may be disqualified if you have pre-existing health conditions.
- After 65: For those in good health, coverage may still be possible. However, it can become more expensive and harder to qualify, leaving you to pay out of pocket for your future care needs.
The right time to purchase care is highly personal. Your eligibility and premiums are based on many different factors, including your age, health, and family history.
If you have health issues, you may be unable to secure a policy no matter how early you start, so it’s best to consult with a long-term care insurance professional to understand your options.
Why Waiting Usually Gets More Expensive
It’s impossible to predict your future care needs, so it may be tempting to put off planning. However, if you choose to secure long-term care coverage, waiting can make policies more expensive or altogether inaccessible.
Premiums generally increase with age. Additionally, changes in your health can make coverage harder to get. Even routine medical changes, including a new diagnosis, prescription, mobility issue, or upcoming surgery, can affect whether an individual will qualify and what terms they are offered.
The U.S. Department of Health and Human Services’ Administration on Community Living and Administration on Aging estimate that 70 percent of people turning 65 will require some form of long-term care services. If you want to have better options at a more affordable premium, don’t wait to secure coverage.
Health Matters as Much as Age
Age is only part of the equation. It’s smart to look into long-term care coverage before health problems occur to have more options.
For example, a healthy 58-year-old man may have better coverage options than their younger counterparts who have significant health issues. To secure the best rates and plans, it’s not enough to simply consider your age. You also have to look at your health concerns.
When you wait to get LTC insurance, you also increase the risk of developing health conditions that could potentially disqualify you from coverage. If they don’t disqualify you, they could cause your premiums to be higher than if you simply secured a plan before they happened.
How Long-Term Care Needs Fit Into Retirement Planning
Many people look at long-term care insurance as a health decision, but it’s more complicated than that. It can factor into your retirement planning, financial decisions, asset protection, and legacy discussions.
Long-term care costs are significant. CareScout estimates the annual cost of care in a private room at a nursing home to be $129,575. That amount will only increase with time, which is why it’s critical to plan for how you will afford care.
Long-term care costs can negatively affect:
- Savings, causing you to deplete your finances by paying out of pocket
- Income affects your standard of living, as you can afford care
- Spouse or partner’s financial security, draining their savings and leaving their financial future in question
- Your legacy, preventing you from passing down what you worked so hard for to your family
Long-term care insurance can give you more flexibility in how you pay for your care. It will protect what you worked so hard for so you have more control over what you leave behind.
What Happens If You Wait Too Long?
Because long-term care insurance is determined by your health and age, you risk your coverage if you wait too long to secure a policy.
Common risks of delaying include:
- Unaffordable premiums: The monthly cost of long-term care insurance is too high to afford comfortably, especially when you account for inflation.
- Changes in health status: Select health conditions can reduce your options, making it less convenient to secure a policy
- Disqualification: You may develop a condition that prevents you from securing LTC insurance, or get too old.
- Fewer benefit choices: You may not be able to secure the policy you had planned for to cover your intended care.
- Self-funded care: You may need to pay out of pocket for care rather than relying on an LTC insurance policy to make it more affordable.
Long-term care insurance is a great planning tool. It can help you control how you receive care and how you pay for it. If you wait too long, you can lose that peace of mind.
Is It Ever Too Early to Buy LTC Insurance?
Those who are risk-averse may want to secure coverage early, even into their 30s and 40s. While buying early can lock in coverage while you’re healthy and often secure a lower premium, that also means that you will be paying premiums for a longer period.
Younger isn’t necessarily better when it comes to the best age to buy long-term care insurance. Instead, there are several factors to consider, including cost, health concerns, and financial planning.
Consult with a financial planner or insurance professional to help you understand your options. They can help outline your future goals and make suggestions to help you achieve them within your budget.
Questions to Ask Before Deciding When to Buy
If you’re not sure if it’s the right time to buy long-term care insurance plans, consider the following questions.
- Am I still in good health?
- Do I have a family history of dementia, Alzheimer’s, Parkinson’s, or extended care needs?
- Would future care costs put pressure on my retirement savings?
- Could my spouse or family be financially affected if I needed care?
- Can I comfortably afford premiums long-term?
- Would waiting improve my situation, or only increase the risk?
You don’t have to make this decision in a silo. Discuss your future care goals with your loved ones. Together, you can decide how you want to receive care and what resources you have to make it a reality.
Conclusion
The best time to buy long-term care insurance is before age or health issues limit your options. There is no magic number.
However, while it is a personal decision, purchasing in their 50s or early 60s offers most people the right balance between affordability, eligibility, and retirement planning. Waiting longer can make coverage more expensive – or in some cases, altogether unavailable.
Lavine LTC Benefits’ team is here to help answer your questions and guide you through the process of securing the right LTC insurance policy. We can help you take control of your future long-term care needs without worrying about how you will afford it.
Contact us today to get started!
Frequently Asked Questions
When Is the Best Age to Buy Long-term Care Insurance?
Most people purchase long-term care insurance in their 50s or early 60s to get the best balance between price, eligibility, and future planning. Waiting too long can make the premiums too high or reduce your coverage options.
What Factors Determine LTC Coverage Eligibility?
LTC insurance plans increase with age and health. They are medically underwritten, so both factors carry equal weight when determining your policy options. You can be healthy and 63 and secure better rates than if you are 48 and have pre-existing health conditions.
Can I Secure LTC Coverage Too Early?
If you secure coverage in your 40s or earlier, you may be able to secure more affordable premiums and more policy options. However, you will be paying on the policy longer.