Best Age To Buy Long Term Care Insurance
What's The Best Age To Buy Long Term Care Insurance
About one out of three consumers who call the offices of the American Association for Long-Term Care Insurance are frustrated. They want to buy protection. They even met with an agent and applied. But they were turned down by the insurance company. They call looking for our help - can they appeal - will another insurer accept them - why did this happen?
That's why we are sharing the following information about the best age to apply. So this does not happen to you.
If you don't want to read the full explanation, we'll tell you that for most people. the best age to apply is in your mid-50s.. You can lock in your good health and today there are policies that allow you to buy some coverage now and add to it in future years.
If you are ready to find out whether you can "health-qualify" for long-term care insurance (meaning meet the insurance company requirements) and to see what coverage costs start the process. Click here to complete our simple online questionnaire and be connected with an expert in your area there is never any obligation and the information is free.
But let's explain why we believe the your mid-50s is the ideal time to buy long-term care insurance. We'll even give you a real cost example below.
Most consumers do not know they must "health qualify" for long-term care insurance. There is a saying, your money pays for long-term care insurance - but your health buys it. Your health is the single most important factor. What does age have to do with health?
Age And Your Ability To Health Qualify For Long-Term Care Insurance?
As we age, our health changes. And once you reach your 50s it almost never gets better (even if you diet and exercise). If you are 50, chances are that you leave your doctor's office with some new prescription in hand. That drug may help you live a long life. But it's those changes in our health that can make it harder or even impossible for you to health qualify for long-term care insurance.
Here are some important facts to keep in mind
Insurers offer discounts to applicants who are in good health
These discounts are locked in. You do not lose them if your health changes.
Each insurer establishes their own health requirements. If you have some conditions or take some medications (even common ones) you should speak with a long-term care insurance professional. You may want to request a quote (see above).
Existing health conditions may be acceptable (even if you were declined several years ago.
The percentage of applicants who qualify for good health discounts declines as one ages (see the chart below)
The percentage of applicants who are declined for health reasons increases as one ages (see the chart below)
Premiums for long-term care insurance are based on your age when you apply.
Costs increase on your birthday. The annual rate increases are generally 2-4 percent in your 50s but start to be 6 to 8 percent per-year in your 60s.
In 2009, new buyers of individual long-term care insurance were the following ages: Under age 54 (26.5%). Between 55 and 64 (54%).
Latest Data: Your Age Impacts Discounts And Declines
Your good health can help reduce the cost of long-term care insurance. Insurers offer discounts that you do not lose even when your heaslth changes.Here is the percentage of applicants who qualify (American Association for Long-Term Care Insurance 2010 Sourcebook)
An existing health condition can cause you to be "rated" (meaning you'll pay more). Or, you may not be able to health qualify at all.Here is the percentage of applicants who we declined - they did not qualify for the insurance they applied for (American Association for Long-Term Care Insurance 2010 Sourcebook)
Let's Look At A Real Cost Example: Why Waiting Doesn't Pay
Because of health changes that take place most often after people reach their 50s, we advocate that long-term care planning start in your 50s. But there is another reason it doesn't pay to wait -- and that's because you'll pay more.
Here is a real example. The following scenarios use real rates (2010).
You are age 55. You want what we term a "standard" plan of coverage. That equals $172,600 in current benefits (based on a $150 daily benefit for a 3-year plan). Your cost is $1,084 per year because you qualify for the preferred health discount (spousal discount too).
Long-term care insurance protection should grow to keep pace with rising costs. The one we are illustrating does. So, by age 65, the $172,600 benefit you bought at age 55 -- will have grown in benefit value to $276,000.
Someone age 65 (today) would pay $3,275 for $276,000 in coverage because it's very unlikely they will still qualify for that good health discount.
And that reflects today's rates. Chances are rates will rise. So, the 55 year old who waits for the 10 years will pay even more.
It almost never pays to wait. And, there is one more important point. While you are waiting, you are uninsured. If something happens causing you to need long-term care (such as an accident or an illness), you'll have to pay yourself.. And, while most people need long-term care in their 70s and 80s, some do need care in their 50s and 60s.
Ready To See If You Can Health Qualify & Get Costs
If you are ready to see what coverage costs start by learning simple ways to get the best long term care insurance costs. Take three minutes to read two guides published by the American Association for Long Term Care Insurance. They appeared in issues of Kiplinger's Personal Finance magazine but you can read them online. No sign-in is required.
If you are ready to compare long term care insurance costs click on this link and request no-obligation information from one of the American Association for Long-Term Care Insurance's designated LTCi specialists. There is no obligation for the information and it is (of course) provided free of charge.