According to The Wall Street Journal, people typically buy long-term-care coverage in their 50s or early 60s and often pay premiums for 20 to 30 years before making a claim.
There is a time-honored phrase related to long-term-care insurance and it goes like
this: "Your money pays for long-term-care insurance, but your health buys it."
As one ages, the risk of not being able to qualify for long-term-care insurance
may increase due to deteriorating health.
In addition to the risks of health problems as we age, the dollar cost of long-term-care insurance rises dramatically because the insurer has less time to accumulate sufficient reserves to cover its part of the risk.
A complete statement of coverage, including exclusions, exceptions, and limitations, is found only in the long-term-care insurance policy. It should be noted that carriers have the discretion to raise their rates and remove their products from the marketplace.
According to LongTermCare.org, in 2013, the annual average cost nationally for long-term care was $83,950, up from $81,030 in 2012.
Long-term-care premiums are based on your age at the time of application. This calculator assumes that premiums are 8 percent higher each year that you delay purchase. Individual policies may vary.
Your Results
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Current age:
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0
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Annual premium for a long-term-care policy:
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$0
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Age you anticipate buying long-term-care insurance:
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0
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Age you anticipate requiring long-term-care benefits:
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0
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In this case, your premium at the higher age would be:
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$0
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The total cost difference now through the year when you expect to need benefits as a result of delaying the decision to acquire long-term-care coverage:
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$0
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Based on the information you provided, this chart illustrates the estimated annual
costs of a long-term-care insurance policy now vs. waiting. Note that in many cases,
your total cost for coverage may be lower if you purchase sooner at a lower premium
than if you wait and pay a higher premium, despite the fact that you would potentially
pay premiums for fewer years.
Cost of Waiting to Purchase Long-Term-Care Insurance
This hypothetical example is only an estimate and assumes that premium levels remain
stable over time. This example does not represent any specific insurance policy
or product. Actual results will vary.
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