Who Should Purchase Long-Term Care Insurance?
Buying long-term care insurance is one way to protect against the high cost of long-term care. However, this type of insuranc...Read more
Long-term care insurance can cover nursing home bills, assisted living fees, and in-home care, providing financial support if you require assistance with daily living when you get older. However, it can also be expensive. Determining the best time to buy long-term care insurance can help you manage your finances effectively as you prepare for the future.
Criteria that affect the cost of long-term care insurance
Several factors influence the average long-term care insurance premiums, including gender, marital status, location, health, and age.
Long-Term Care Insurance by Age
Age is one of the most critical factors impacting how much you will have to pay for long-term care insurance. Generally, younger people pay lower premiums, as premiums increase with age.
According to the American Association for Long-Term Care Insurance, people will have different annual premium rates depending on when they purchase their insurance:
Other considerations: inflation and life insurance
Several other considerations might affect when you decide to acquire long-term care insurance:
What is the best time to buy long-term care insurance?
According to the United States Department of Health and Human Services, approximately 70 percent of people will require care by age 65. The optimal time to purchase long-term care insurance depends on your unique situation.
You can purchase long-term care insurance when you are younger for lower annual premiums, yet those yearly payments can accumulate. On the other hand, your insurance premium could become untenable if you wait until a more advanced age, such as your 70s or 80s, to purchase it.
Obtaining long-term care insurance in your 50s or early 60s may be an effective option for many people, allowing you to capitalize on relatively lower rates while ensuring financial protection as you age.