Long-Term Care Insurance: Is It Right for You (and Your Parents)?

When Should You Buy an LTC Policy?

Keep in mind that the annual premiums for LTC coverage are much higher if you wait until your 60s or later to take out a policy. Few experts recommend purchasing coverage before age 50.   After age 70, premiums may become prohibitively expensive.

While you’ll pay lower premiums if you buy a policy at a younger age, keep in mind that you’re likely to pay a long time before collecting benefits, if ever. The average age at which people enter nursing homes is 83.

On the other hand, a compelling argument for purchasing a policy at a younger age is that health issues could render you uninsurable at an older age. Buy an LTC policy at a younger age if any of the following apply:

• If your health is deteriorating
• If you engage in high-risk activities
• If your family has a history of early disability

If your fear of the unexpected is robbing you of sleep, you may want to obtain coverage now rather than waiting. Too, decisions of equal importance are whether you can afford the premiums or are wealthy enough to self-insure.

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