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Do You Know the Best Time to Buy Your Long-Term Care Insurance?

November 24, 2021

It's Long-Term Care Awareness Month, and it might also be time for you to purchase your insurance plan. Insurance can be costly and confusing, but it's also necessary to avoid wiping out your retirement savings. Knowing what you need to buy and the best time to purchase is crucial.

Consider this:The national median daily cost for a private bed in a nursing home in 2019 was $280 a day, or $102,200 a year — up nearly 2% from 2018. A yearlong stay in your own room at an assisted living facility runs $48,612.

So, what's the right age to buy a long-term care insurance (LTCi) policy that keeps premiums affordable while saving you money on total premiums paid over the life of the policy? Assuming you're still in good health and eligible for coverage, the optimal age to shop for a policy is between 60 and 65. It’s suggested that couples start looking about five years earlier. You risk being at greater risk of rejection for coverage because of poor health by waiting extra years.

Not everyone needs an LTCi policy, so it's essential to ask some questions:

  • Health history. Do family members have hereditary conditions?
  • Long-term care. Have other family members needed assisted living or nursing care?
  • Finances. Can you afford to pay out of pocket, or are you willing to liquidate to pay for long-term care?
  • Risk tolerance. Are you risk-averse or uncomfortable with unknown future costs?

As your trusted financial professional, we believe you should be having conversations about your long-term care intentions once you reach age 50. If you're ready to start the conversation, reach out to us. We look forward to hearing from you!


This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

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