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Many people will need some form of long-term care as they age, but not everyone is prepared for the potential long-term care issues that can arise. or the high costs involved. According to the Department of Health and Human Services, more than half of Americans turning 65 today, or about 56 percent, will develop a disability severe enough to require long-term services and supports.
This type of care comes with a price tag that can easily exceed $100,000 per year depending on the type of care you need. But paying for long-term care doesn't have to require out-of-pocket payments. You have the option get long-term care insurance coverage, which helps cover these types of costs. However, it is easier for younger applicants to get approved for a policy, as your age, health status and other factors are weighed heavily in the process.
Guarantee long-term care coverage However, it can be more difficult for older applicants, as you are more likely to have chronic health conditions that can complicate matters. But the good news is that there are some ways to improve your chances of approval, experts say. Here are some tips for getting approved for long-term care insurance at age 70 and beyond.
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Buying long-term care coverage at age 70? 3 tips to get approved
There are no formal age restrictions for getting approved for long-term care insurance. But as we age, we're more likely to face a range of health problems, which means it could be harder to get approved for coverage, especially in an affordable price.
“As we age, our health can deteriorate and this will directly affect your cover ratings,” says Imrana Begg, chief executive of Experior Financial Group. “The older you are [are]the more risky an insurance company considers you to be.”
you might still have coverage at 70, Begg says, but the older you get, the harder it is to get approved.
“The likelihood of a 70-year-old being approved for coverage is about 50/50,” says Begg. “Some carriers will approve an applicant up to age 80. After age 80, it's very possible that a carrier will deny coverage.”
Getting long-term care coverage at age 70 it may be more difficult than getting it when you're younger, but there are a few ways you can get approved, including:
1. Opt for an annuity doubler
Instead of buying long-term care insurance on your own, you may want to do this yourself buy it as a dual product — meaning you're buying it with other types of coverage, like an annuity doubler.
“Explore dual products such as annuities with long-term focus doublers,” says Jason LaBarge, president and financial advisor at LaBarge Financial. “Usually, annuity payments will double to help pay for long-term care services and expenses.”
Many insurance companies offer annuity options to add long-term benefits. These additions can help you pay for out-of-pocket costs that you might not otherwise be able to afford.
“If you invest $100,000 in an annuity with a long-term care broker and your health care questionnaire aligns with the insurance company's standards, you can get $200,000 or $300,000 in care benefits in long term throughout your life,” he says.
Let's say you insure a policy with a monthly annuity payment of $2,000 and a long-term care duplicator. If at any time you are unable to perform at least two of the six basic life activities: personal hygiene or cleaning, dressing, going to the bathroom, transferring or walking and eating, the payments you receive as part of your policy would increase to $4,000 per year. month.
“Qualifying for affordable long-term care coverage later can be a challenge, but no subscription is required to add an annuity doubler,” says LaBarge. “This is a major advantage for 70-year-olds who may already be experiencing some health complications.”
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2. Look at long-term care users
Add a long-term care insurance broker in your life insurance policy can also help ensure long-term care coverage is available if or when you need it.
“These types of options typically allow the policyholder to 'turn on' their long-term care benefits only if and when needed,” says LaBarge. “Subscription is required to add a long-term care rider to a life insurance policy.”
When you go this route, there are funds for long-term care expenses if you need them. If you don't, you'll usually still get the same death benefits as you would with a regular life insurance policy.
“Hybrid life and long-term care insurance can provide greater coverage,” says Jason Handal, vice president of risk products at Northwestern Mutual. “With this option, qualified long-term care expenses are initially reimbursed by accessing the policy's death benefit. Once the death benefit is used, you can access additional funds if you continue to be entitled to receive benefits. If not you need them.funds to cover long-term care expenses, the value of the death benefit will remain intact, just like a traditional life insurance policy.It is also a permanent product, so it increases in value effective”.
3. Talk to a professional
If you're worried about getting approved for long-term care coverage, it can help to talk to someone who can evaluate your unique circumstances and help you create a plan and policy that's best for you.
“Work with an advisor and consider the need for long-term care coverage in the context of a holistic financial plan,” says Handal. “The counselor can then work closely with that person to determine the best and most appropriate solution for their unique needs and particular situation, including weighing any health issues they may have, as well as their goals, concerns and budget”.
However, it is not a unique situation. That's why Begg recommends talking to a professional for additional help.
“It's highly recommended that someone looking to buy long-term care insurance talk to a professional,” says Begg. “A good analysis can show a customer's ability to maintain monthly premiums.”
