When to buy long-term care insurance

Intro

Experts often recommend buying long-term care insurance (LTCi) in your 50s. That’s not bad advice, but we believe earlier is better—no matter your age, for three reasons.

• Pass underwriting
• Get early coverage
• Save money

Among these three, the biggest reason is to avoid The Thing so you pass underwriting. So, what is The Thing?

• Is it that superhero with rock-like skin who can lift over a hundred tons? No, not this time. But you’d probably want to steer clear of him anyway, particularly when choosing a partner for synchronized swimming.
• In this context, The Thing is the health issue that sneaks up on you and makes you ineligible for coverage. It happens more than you would think.

If you've ever wondered, "Yeah, The Thing is strong. But can he build a kiddie slide?" Check out this 10-second clip.

Remember to use the letters LTC as a guide to achieve these goals: Learn about options, Talk with family, and Create a plan. Figuring out if and when to buy LTCi is a big part of securing peace of mind for the future.

The reasons to buy early

Why buy long-term care insurance (LTCi) early? Here are three key reasons that show why acting sooner can make all the difference. Let’s dive in.

Reason 1 - Pass underwriting

The first and top reason to buy LTCi early? Avoid The Thing—a health issue that pops up that could severely limit your options or disqualify you from coverage altogether.

When you apply, insurers undergo an underwriting process, where they turn into health detectives. They're looking for reasons to deny you coverage or charge you more for it. For those over 65, this can even include memory tests, like recalling words over the phone, as part of the cognitive assessment.

What counts as The Thing? It could be:

• Certain illnesses like cancer, Parkinson's, and MS
• Injuries that affect daily life like back or joint issues
• Your parents are diagnosed with early-onset Alzheimer's

Unexpected health issues are more common than you might expect, as shown by the increasing number of people who are declined coverage as they age.

But passing underwriting isn’t the only reason to act early. Let’s dive into another key reason: getting coverage now.

Reason 2 - Get early coverage

With other types of insurance like home or auto, you buy coverage for a year. But with long-term care insurance, you buy coverage for life.

By buying early, you're protected if The Thing happens unexpectedly. Many people need long-term care before they're 65.

It's possible. A study conducted by Georgetown University in 2000 showed that 37% of those receiving long-term care were under 65, often due to chronic conditions, injuries, or disabilities. 👀

Buying early means you'll be insured from now until you die. But at what cost?

Reason 3 - Save money

You might assume early coverage costs more since you'll have it longer, but the opposite is true.

The total cost of long-term care insurance is cheaper the younger you are. Here’s why:

• More time - Insurers expect you won’t need the coverage for a while, so they can earn interest on your premiums for longer.
• Healthier - You’re likely healthier now than later, which means lower rates (better health class).

Or you can wait

But of course, not everyone does or can buy early. Here are some reasons why waiting might make sense for you.

• Higher priorities – Maybe you’re saving for your kids’ college or something else more important. Our thought: We agree.
• Self-fund – You could invest your savings and plan to cover care costs out of pocket. Our thought: Maybe. Check out our post on self-funding.
• Wait for a better fix - Hope that Medicare, AI, or something else solves long-term care. Our thought: It’s a long shot, but we’ve got a post on it.

Watch this 2-minute video about how robots are helping nurses. We still have a long way to go. 😄

Wrap up

In the end, deciding when to buy LTCi depends on your personal situation. Luckily, you’ve got a wide age window—policies are available for those who are 30 to 80 years of age; most people buy at around age 57.

But remember, waiting too long risks encountering The Thing—not the superhero, but that sneaky health issue that can block your coverage. Just like you wouldn’t want The Thing weighing you down in the pool, you don’t want health surprises to sink your chances of getting the coverage you need.

If insurance is part of your plan, buying early is often your best bet. It gives you a better chance at locking in lower rates and more coverage—before anything unexpected shows up.