Planning matters

When is the best time to buy Long Term Care Insurance?

Many clients ask me: When is the best time to buy Long Term Care insurance?

My answer: While you can still qualify for coverage!

Long-Term care (and how you will pay for it) is something to consider and plan for before you need it and while you can still get it. Many people avoid having the conversation, thinking they will never get sick or need care as they age. Then boom, a dramatic change in their health and they cannot qualify for coverage.The time to apply is when you are still relatively healthy and have no pending issues (like surgery, therapies or diagnostic tests).

Both types of coverage (traditional vs. hybrid) offer a monthly benefit to help cover the cost of care. “Traditional” coverage has monthly or annual premium payment options, while “hybrid” coverage requires a lump sum premium, which is not an option for some people.

There are several reasons why you should consider “traditional” Long Term Care insurance.

Tax advantages: Premiums are tax deductible and HSA account holders can use dollars in those accounts to pay for premiums.
Traditional Long Term Care insurance offers the most leverage per premium dollar paid vs. hybrid Long Term Care products. It’s not exactly inexpensive, but an annual premium of $2,500 can purchase about $250,000 of coverage or 100 times the premium paid.
• Long Term Care insurance works. Policyholder’s claims experience, in general, has been good. They file a claim and benefits get paid.
Traditional Long Term Care coverage offers the most customization of benefits, like shared care, multiple inflation options, and waiver of premiums upon a claim.

November is Long Term Care awareness month.  If you have questions about what options are available to you and costs involved, feel free to give me a call at the office.  I will be happy to provide you with more information.


Written By Jeri Boston