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Long-term care insurance – a product designed to help cover the cost of services such as nursing homes and home health aides – is usually better to buy when you are young and their possible need for attention is far away. But, What if you are 80 years old??
Since Premiums tend to increase with age, long-term care insurance can be expensive at the end of life. Also, your health plays an important role in your ability to qualify for coverage. Since health can decline as you age, it may be hard to find a policy you can qualify for in your 80s. But, it is not impossible. So, if you can opt for long-term care insurance at this age, is it worth buying? That's what we'll break down below.
Chat with an expert about your long-term care insurance options today.
Is it worth buying long-term care insurance at age 80?
“If someone is over 80 and has not yet purchased long-term care insurance, they will need to act very quickly to see if long-term care insurance options are available to them,” explains Kelly Augspurger, Educator from CLTC. for Long-Term Care Certification, an educational company that certifies long-term care insurance agents. “Options are determined primarily by health and age. Most carriers stop accepting applicants when customers are over 70. However, there are some hybrid carriers that accept applications up to 85 “.
And, there are several reasons why buy long term care insurance nowalthough you can still qualify, it's worth it.
Long-term care is expensive
The cost of support and long-term care services is tall and growing. According to Genworth, the annual cost of an assisted living facility is expected to average around $66,126 this year. And, by 2025, that average cost is expected to be about $68,110 (almost $2,000 more per year).
While your premiums may be higher when you buy long-term care insurance at age 80 than if you bought it earlier in life, they're usually far it is less expensive than paying for your care out of pocket. And, with most older adults needing care at some point, it's wise to buy a policy to plan for that need.
Find out how affordable your long-term care insurance can be now.
Medicare typically does not cover long-term care
Many older adults have the misconception that Medicare provides long-term care coverage. But, Medicare is not designed to provide these types of benefits. So if you planned to rely on your Medicare, you may be surprised when you need care.
Although some state Medicaid programs cover the cost of long-term care, this coverage is often limited and difficult to obtain. In fact, to access state Medicaid long-term care coverage, you typically have to spend down your assets until you have very little left and limited retirement income. Therefore, Medicaid is more of an option of last resort than a plan for the future.
On the other hand, long-term care insurance can help you plan for your care while allowing you to maintain your assets and retirement income.
You don't have to lose your premiums if you don't need long-term care
Previously, if you didn't use your long-term care insurance for care, you usually lost the value you invested in it. If you had a policy and did not need long-term care before you died, you would lose the premiums you paid for the coverage.
Current policies are different. Many long term care insurance policies offer hybrid coverage which provides a death benefit along with your long-term care benefit. That way, if you don't need care before you die, your heirs will enjoy the value you built into your policy through the death benefit it provides.
The bottom line
Whether you're 50 or 80, long-term care insurance is an important consideration. While it may be more expensive for the 80s, it's usually well worth the premiums. After all, long-term care services can be expensive, and Medicare doesn't usually cover the bill. And, this is no longer a use-it-or-lose-it type of insurance. These days, Long-term care insurance is usually backed by a death benefit for those who do not use coverage for care. So chat with a long-term care insurance specialist about your options now.
