When Should You Buy Long Term Care Insurance?

couple with insurance agent


Health and age are highly correlated. As a person ages, the health gradually becomes frailer. These two factors play an important role if you are still asking when should you buy long term care insurance and intending to apply for coverage.

There is one fact that most people tend to overlook about long term care insurance application—you need to be health qualified. The healthier you are, the bigger the chance that you’ll be granted this policy. As the popular saying entails, it is your money that pays for long term care insurance premiums, but it’s your health that actually buys it.


Factors to Consider When Buying Long Term Care Insurance


The Ideal Age to Buy

It is advised that you purchase while you’re in your 50s. First, your health is still in great shape during this time. Second, age is also a basis whether you’ll qualify for long term care insurance or not.

Annual increases in your premiums are also parallel with your age. For people who are in their 50s, rates can increase by about 2-4%. Meanwhile, for those who are in their 60s, it can go as high as 6-8% percent. Applying early lets you save and these savings can go to other investments or your retirement nest.


Health and Discounts

A superb health condition greatly works for your benefit when it comes to long term care insurance. Companies usually offer discounts if you apply while your health is still in its prime. More so, this discount is locked-in. This means that your discount remains, regardless if you get ill or diagnosed with a medical condition in the future.

Buying long term care insurance at a younger age makes you eligible for health discounts. A single female age 55 with a daily benefit of $200 for four years has an annual premium estimate of $3,476.45 while a single female age 60 with the same features has an estimated premium of $4,475.57.

This goes to show that age and health are huge factors on your long term care insurance premium estimates. So, it’s best to get covered early while you’re young and healthy to enjoy health discounts and more affordable premiums.


Pre-existing Conditions: Lesser Chances

There are two scenarios that you might face if you have pre-existing conditions and you want to apply for long term care insurance. First, you may not qualify at all. Second, your application can be accepted but your premiums will cost higher.

Even if you qualified while having underlying medical conditions, there could still be drawbacks on your end. Some companies can offer coverage for your pre-existing condition, but it will set a waiting period before that certain benefit will start to kick in.

If you want to get the best deal out of long term care insurance, use your age and health to your advantage. You may have the means to pay for the cost of premiums, but that will be all for naught if you can’t qualify simply because of your age and the state of your health.

Purchasing early will no doubt make the application process smooth for you. Apart from that, it can also be advantageous to your wealth, as applying early can generate savings on your end.

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