Long-term care insurance can be an important step in planning for your future. This type of insurance allows you to accumulate value for your long-term care. But when is a good time to purchase this insurance? With costs of nursing homes and hospital fees constantly on the rise, it is vital to be financially prepared.
When is the Right Time to Buy?
While some financial advisors may suggest that you purchase your insurance after you are sixty, that may already be too late. When looking at long-term care (LTC) insurance, your overall health and medical records are the biggest determining factor of your premiums. By the time you are sixty, you are more likely to have more chronic conditions. There is no specific age for when you should buy this type of insurance. It is better to purchase it sooner rather than later. With more years of work between you purchasing insurance and your retirement; the more value you can accumulate for when you are in need of it.
Approval Rates at Younger Ages
As you age, it becomes harder to be approved for LTC insurance. In fact, if you are within the ages of 60 and 69, there is a 25% chance of being declined; statistically speaking. Only about 12% of individuals are turned away if they apply before the age of 50. The younger you are when you apply, the easier it will be to secure your insurance. If you wait until you are between 70 and 79; it is almost a 50/50 shot at getting approved.
Other Factors in Insurance Costs
Your health and age are not the only factors that determine the costs for your LTC insurance. Gender, marital status, partner’s health history, income levels, and more. Additionally, the longer you wait to buy into LTC insurance, the higher your average rates will be. For each year above fifty, you might be adding an additional 2-4%. This increases after you hit 60, where the annual uptick can be about 5-7%.
For more than 40 years, our firm has been assisting people like you with long term care and estate planning needs. We bring you the knowledge and resources to protect you and your family. Armstrong & Lamberti, PLLC do not provide tax, legal, or accounting advice by articles. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Call 718.477.7700 or contact us online to schedule a free initial consultation with an estate planning attorney at Armstrong & Lamberti, PLLC. We proudly serve Staten Island, Brooklyn and the other boroughs of New York City.