The Right Time to Buy Long Term Care Insurance

July 29, 2019

No one waits until the last minute to start saving for retirement, so why would you put off purchasing long term care insurance?  One of the primary reasons people worry about exhausting their savings after they retire is because of the increasing cost of care.  We have more options than ever before, but Medicare may not pay for them completely.  As it turns out, a majority of us (69 percent, to be precise) will end up needing long-term care coverage at some point.  Don’t wait to ask your trusted advisors at Bounds Accounting about possible benefits.       


When Age Matters


Depending on where you look, you’ll find advice encouraging individuals of all ages to buy long term care insurance.  Some articles recommend investing in this coverage early—in your twenties or thirties.  When the underwriting is most forgiving, and the rates are most affordable.  Other advisors encourage policyholders to wait until their late fifties or even age sixty!  Although it’ll be more expensive by then, you’ll be closer to the point when you actually need to use it. 


Just don’t delay too long.  In many cases, the right time is right around fifty.  It’s when you start counting down to retirement and finalizing your estate planning.  It’s also when rates tend to increase, and health changes occur.  Of course, if you’re a little before or after this mark, we’re still happy to help!


How’s Your Health?


Believe it or not, this question is actually more important than “How old are you?”  At least when we’re talking about long term care insurance.  While both factors influence your premium, your health plays a stronger role in your ability to qualify for this coverage.  See, most of these policies are only available on an individual level—instead of through a group.  Especially if you’re trying to obtain a stand-alone plan, rather than one that’s rolled in with another type of coverage, such as life insurance.


On the individual market, you’re faced with underwriting questions that may inquire about your current medications, pre-existing conditions, family health history, and more.  When you’re young and healthy, it’s a relatively simple process.  You may even qualify for discounts if you’re in especially good health that will last throughout the life of the policy!  As illnesses and other issues pop up, though, you’re faced with higher rates and more limited options.


If you’re concerned about how your health will affect your ability to obtain long term care insurance, just contact us.  Not only will we walk you through the underwriting process, but we can also explain your options and offer current quotes.


Before You Need It


In all seriousness, long term life care insurance can be incredibly valuable.  It means the difference between worrying about how you’re going to pay for your family members’ care (or vice versa) and simply appreciating the time left.  Even with ample savings, you could find yourself unable to cover the rising costs of nursing homes, home health care aids, and other similar services.  In 2018 alone, a private room in an assisted living facility cost over $100,000 annually.


Rather than waiting until the last minute to look at your options, ask us about this type of coverage now.  At Bounds Accounting, we strive to serve as your trusted advisors in all financial matters.  Whether we’re working with you on general accounting, tax preparation, or your insurance need—including, but not limited to, long term care insurance.  We can help you determine the right time to secure this coverage for you and your family.