I was on a short vacation this weekend and when someone learned what I do for a living, they followed up with the usual questions: why do people buy it? When do they buy it? How much does it cost? Etc.
So this week I thought I would give you some recent survey data to answer some of those questions. Here is a link to the results of a Buying Trend Survey: http://ltcconsumer.com/long-term-care-buying-trends-2015/
The most interesting thing to me was the age at which people purchase. Even 10 years ago the average purchase age was middle to late 60’s. Today that is dropping like a rock. More people are buying in their 50s and even in their 40s. Why? Price. Because price is based on both quality of health and age of purchase, the annualized premium is always cheaper younger and healthier. Further, the closer you are to your mid-40s when you buy, the cheaper it is overall. It defies logic a bit, but in truth it costs you less over the life of ownership to buy in your late 40’s than it does to wait until even your early 50’s – it can save you thousands of dollars over all if you buy younger and healthier.
My normal final advice to folks – though they never ask this question – is don’t wait until it is too late. We get calls all the time at the office with folks wanting to buy a policy for Mom or Dad where there has just been a stroke with residual damage or a diagnosis of mild dementia. It is too late by then. If you are in imminent danger of needing to file a claim, no carrier will cover you. Think of it like home owner’s insurance….if the roof is already smoking, no one is going to insure the property.
Buy young. Buy when you are healthy. Work with a proven professional so you don’t buy more than you need.
LINKS ABOUT BUYING LONG TERM CARE INSURANCE
- FAQ’s for Buying Long Term Care Insurance
- Why Do I Need A Long Term Care Insurance Policy?
- Buy Young
- Hybrid vs Traditional Long Term Care Policies
- How Do I Pick A Long Term Care Insurance Carrier?
- Consequences Ahead
- It Ain’t Your Grandma’s Medicaid
- Affordable Health Care Act vs Long Term Care Insurance
- Federal Veteran Benefits for Long Term Care
- State VA Benefits for Long Term Care
- Glossary of Terms for Long Term Care