Long-term care insurance: Why those in their 70s should act now

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Long-term care insurance may still be a viable option at age 70, but you should act quickly.

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Long-term care insurance it's not a product that most younger adults run to get their hands on. However, the need for this type of insurance grows exponentially as you age. When you reach age 65, you have a significantly high need for long-term care assistance So, if you're 70 and still don't have coverage, now is the time to act.

After all, power pay for long-term care services it can be a challenge. Even the lower cost long-term care support it can cost you tens of thousands of dollars a year. And if you need the kind of help that nursing homes provide, you could end up paying more than $100,000 a year for that care. That's why people over 70 should consider taking action now.

Get your long-term care insurance now before it's too late.

Long-term care insurance: Why those in their 70s should act now

While optimal time to purchase long-term care insurance is typically when you are 50 years old, is an even more important consideration when you're in your 70s. In fact, if you're 70 and still don't have a plan to cover your long-term care costs, you should buy a policy now. Here's why:

Long-term care costs are only likely to rise

Long-term care services are expensive. Current costs for this type of support range from tens of thousands of dollars to over a hundred thousand dollars per year. And unfortunately, that cost isn't likely to go down.

Health services, such as long-term care, are not immune to the impact of inflation. And lately, inflation rates have been higher than expected. According to the Bureau of Labor Statistics, health care services were 2.1% more expensive in March than a year earlier. As prices continue to rise, adequate long-term care services will likely become even more difficult to come by in the coming years.

And at age 70, you may be on a fixed income. As such, it may be impossible for you to keep up with the rising cost of long-term care without the help that an insurance policy can provide.

Buy long-term care insurance now to make sure you can cover the rising cost of care.

Long-term care insurance will only get more expensive

Long-term care insurance companies must consider the financial risk involved in writing policies. In turn, these policies usually come with higher premiums as you get older. So acting now, even when you're 70, will likely give you better premiums than you could access in years to come.

“A person applying for an LTC insurance policy at an older age will have a shorter period of time before filing a claim to access their policy benefits,” says Lori Martin, CLTC, and instructor of Long-Term Care Certification, a company that provides certifications for long-term care insurance agents. As a result, he says, “the LTC insurance company is not collecting as many premium dollars and the premiums are not being invested over a longer period of time.” This results in higher prices for larger applicants.

And, insurers must take into account health problems that may arise later in life. “Seniors may have health problems later in life that are not discovered during the application underwriting process,” says Martin. So there is more risk for the insurer, which usually means a higher cost for older applicants.

Coverage options may be more limited

As you age, your options for long-term care insurance coverage will likely begin to decrease. And if you wait too long after age 70, you may not be eligible for coverage Absolutely not.

“A barrier for this age group is acceptance, as the rejection rate at age 70 is about 50%,” explains Afik Gal, co-founder and president of Assured Allies, a financial planning firm and insurance that caters to the elderly. However, you may still have adequate coverage options if you act quickly. So you shouldn't wait to buy coverage.

The bottom line

Long-term care insurance is an effective way to do this plan the cost of your care in the future. However, as you age, the cost of this insurance could increase and the availability of suitable policies may decrease. The good news is that you can still have quality coverage options available, even at age 70. But it's important to act now to make sure you don't miss out on the opportunity to buy a policy, and that when you do, you get the lowest possible premiums.



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