How Old Is Too Old To Get Long Term Care Insurance?

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   William Bridgers

   Specialist, LTCi, DI, Annuities, Life, Designs In Life, LLC, Utah

   The maximum age for applying varies by carrier.  The lowest maximum age that I know of is 65 with Lincoln National's single premium MoneyGuard Reserve.  But, any of the carriers can change their maximum issue age any time they want (with notice) and they do.  The oldest qualifying age that I'm aware of is 80, but typically health issues at that age seriously limit the chance of successful underwriting.  And, the costs at that age are so high as to make stand-alone long-term care insurance virtually unaffordable to any but the most wealthy.Contracts that have a linked long-term care benefit rider may accept an application equal to the maximum date of applying for the contract without the rider. For example, some carriers have limited the age of adding an LTC rider to a life insurance policy.  Some of the carriers that provide a "living benefit" for paying for long-term care costs by accelerating the death benefit of a life insurance policy are John Hancock, Nationwide Life, and AXA Financial.  Other carriers may have a similar rider that adds "must be a permanent or chronic condition" to the criteria to qualify for the living benefit.Annuities with favored withdrawal privileges for covering LTC costs may be the only option for the very elderly.  Some annuity companies issue single-premium immediate annuities at virtually any age (usually the maximum is age 90).  However, payments from that type of annuity may not be fully income-tax free.Because of the increasing concern over financial abuse of the elderly, it is important that a qualified tax advisor be consulted before moving any money into a financial instrument that does not require medical underwriting and locks money up for a specified period of time or which allows very limited access to it without stiff back-end (surrender) charges. 

   Answered on June 27, 2013

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