Specialist, LTCi, DI, Annuities, Life, Designs In Life, LLC, Utah
The best time to buy long-term care insurance is anytime you are medically qualified to do so. The biggest problem people have is that they wait too long to apply, they get a condition or chronic health problem that is uninsurable by any carrier, and they are stuck with an LTC-friendly annuity as their only possible solution to how they might pay for long-term care costs. (This would be an annuity that does not require underwriting for the LTC benefit of the annuity contract, but allows for liberal access to the account value for payment of LTC costs.)
Buying at a very young age doesn't not have much of a financial advantage since premiums don't really start to climb until about ages 50-60. After age 65, one has in reality "missed the train" and, assuming medical qualification, will pay a hefty price for a traditionally designed long-term care contract. However, there is another train behind the first one, and that involves designing the contract as a static pool of money with maximum access to it. It costs about half of the traditionally designed LTCi contract, but it lacks any accommodation for the escalation of care costs over time. Still, it is better than no coverage at all.
From an economic perspective, in buying young, one would have to weigh the cost of paying premium over a longer period of time. From an insurability perspective, however, one should remember that Superman (Christopher Reeve) did not know he would become a quadriplegic at age 41. Also, many carriers have a "preferred" rate class, which may be a lot easier to get at an early application age. Recent claims history research has shown that a greater percentage of claimants are under age 65 and the number is growing.
With some possible tax breaks on the payment of LTCi premiums - and possibly greater tax breaks in the future as Congress weighs the burden the uninsured elderly on Medicaid - one should seriously start planning for long-term care individually, as a couple, and for parents as early as possible. Death will happen. How long it takes to die may be problematic and costly.
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Buying at a very young age doesn't not have much of a financial advantage since premiums don't really start to climb until about ages 50-60. After age 65, one has in reality "missed the train" and, assuming medical qualification, will pay a hefty price for a traditionally designed long-term care contract. However, there is another train behind the first one, and that involves designing the contract as a static pool of money with maximum access to it. It costs about half of the traditionally designed LTCi contract, but it lacks any accommodation for the escalation of care costs over time. Still, it is better than no coverage at all.
From an economic perspective, in buying young, one would have to weigh the cost of paying premium over a longer period of time. From an insurability perspective, however, one should remember that Superman (Christopher Reeve) did not know he would become a quadriplegic at age 41. Also, many carriers have a "preferred" rate class, which may be a lot easier to get at an early application age. Recent claims history research has shown that a greater percentage of claimants are under age 65 and the number is growing.
With some possible tax breaks on the payment of LTCi premiums - and possibly greater tax breaks in the future as Congress weighs the burden the uninsured elderly on Medicaid - one should seriously start planning for long-term care individually, as a couple, and for parents as early as possible. Death will happen. How long it takes to die may be problematic and costly.