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if you are buy long-term care insurance (a type of insurance that covers the cost of services such as nursing homes, assisted living facilities and home health aides) in your 70s, you may have some challenges to overcome. Insurers need to think about the risk associated with offering new policies. And since most people are done 65 will need some form of long-term care before you die, this risk to the insurer is greater when you are 70 than for younger applicants.
Considering this increased risk, the rejection rate between long-term care insurance the applicants is treated 50% at age 70. And, if you have access to coverage, that it can be expensive. But the good news is that there are ways to do it cut that costeven if you are buy long-term care insurance at age 70.
Compare your long-term care insurance options now.
How to reduce the cost of long-term care insurance in your 70s
Worried about high long-term care insurance premiums in your 70s? Here are some ways to reduce your costs.
Apply now
If the cost of long-term care insurance is a concern, it's important to apply for coverage as soon as possible. With the risk for insurers that play an important role in premiums, and yours the risk of needing long-term care increases with age, the premiums you qualify for today could be the lowest long-term care insurance premiums you'll ever have access to again. The longer you wait, the higher your premiums may be.
Don't wait until coverage is too expensive. Apply now for long-term care insurance.
Consider long-term care insurance as a supplement
At first glance, you might think of long-term care insurance as a way to pay 100% of the cost of your care. But you may not need your policy to cover all of these expenses. If you have retirement income, you may be able to use some, if not all, of that income to help reduce costs. And that could reduce the total coverage you need.
For example, let's say you have $55,000 a year in retirement income, but you also have $20,000 a year in costs that you need to cover that income. That leaves $35,000 a year in retirement income that you can use to fund some of your out-of-pocket long-term care expenses. So, in this example, you'll need $35,000 less in coverage annually, which can result in significant savings on your monthly premiums.
Shop around
Keep in mind that insurance companies are their own entities and are free to charge whatever premiums they see fit for the coverage they provide. So it is advantageous compare your options.
“Search and compare quotes,” says Justin Stivers, financial advisor and founding attorney at estate planning law firm Stivers Law. “Take the time to research multiple insurance providers and get quotes from different companies. This can help you find the most competitive rates and coverage options tailored to your needs.”
Don't buy coverage you don't need
As you shop for long-term care insurance, you'll find a variety of coverage options and customization opportunities. For example, some long-term care insurance policies limit your coverage to formal care. Although there may be other policies that allow it pay informal carers such as friends and familythe additional cost associated with these policies may not be worth it if you don't already plan to commit to this type of caregiver as you age.
Also, you should carefully consider the cost riders before adding them to your policy. For example, you may know that a premium return broker can pay your beneficiaries the premiums you paid for your insurance if you don't use it before you die. While this may seem like a compelling option, these brokers can make a significant difference in your monthly premiums, and forgoing them can be a wise choice if you're interested in getting the lowest premiums possible.
The bottom line
Long-term care insurance can be expensive in your 70s. But that doesn't mean you have to go without the coverage you need. There are some things you can do to lower the cost of your long-term care insurance premiums, even after you turn 70.
First, apply today. Since long-term care insurance premiums tend to increase with age, the price you qualify for today may be the best price you'll ever have access to. Also, think of long-term care insurance as a supplement to your retirement income when you need care, rather than the sole source of financing your care. And, avoid users and policy customization opportunities that don't apply to you or are simply too expensive to consider when you need it affordable premiums.
Joshua Rodriguez
