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3 times to buy long-term care insurance (and 3 times not to)
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There are several financial decisions you’ll need to make as you plan for retirement. One of the most important of those decisions is whether or not you’ll purchase a long-term care insurance policy. Most people ages 65 and older will need some form of long-term care. And since that care can cost over $100,000 a year, failing to plan for it can have a detrimental impact on your quality of life in retirement.
Although a long-term care insurance policy can help you plan for these expenses, there are better times to purchase a policy and other times when you should look elsewhere. Below, we’ll break three times to buy this unique insurance form and three times not to.
Learn more about your long-term care insurance options today.
3 times to buy long-term care insurance (and 3 times not to)
Here are three ideal times to purchase a long-term care insurance policy and three other times to consider alternatives.
3 times to buy long-term care insurance
Here are three times buying a long-term care insurance policy is probably a good idea:
When you’re young
Long-term care insurance is typically less expensive for younger applicants. That’s because long-term care insurance providers have to consider the risk that you’ll make a claim when they price your policy.
“The earlier long-term care insurance is purchased the lower the cost and better coverage included,” explains Afik Gal, MD, co-founder of Assured Allies, a financial services and insurance firm that helps seniors. “Long-term care plans are given at lower rates to younger and generally healthy people because they’re less likely to need benefits soon.”
Don’t wait too long to purchase coverage. Compare your long-term care insurance options now.
When you want to age at home
Some long-term care insurance policies may limit your coverage if you don’t move into a nursing home or assisted living community. But that’s not always the case. Some policies make it easier to age at home with coverage for things like family caregivers and adult daycare services.
When you’re healthy
The healthier you are, the longer it will likely be before you experience an event that causes a long-term care need. So, long-term care insurance premiums are usually lower when you’re healthy. But future good health isn’t promised. As such, it may be a good idea to lock in coverage now if you’re in healthy.
3 times not to buy long-term care insurance
Though there are times it’s wise to buy long-term care insurance, there are also times you may want to consider other options. Here are three times in which you may want to look for alternative solutions.
When you already need care
“Consumers shouldn’t wait to purchase long-term care insurance until it is needed because they will have a very high chance of rejection from insurance carriers,” says Dr. Gal. So, if you already need care, you’ll likely need to consider other avenues for covering the cost of that care.
When you’re over 70 years old
There is no specific age that will disqualify you from accessing coverage. However, “LTC insurance becomes very expensive over age 70,” explains Bill Comfort, director of training at Certification for Long-Term Care. “So, balancing a meaningful – even smaller – benefit against the premium cost is much harder.”
Considering the fact that long-term care insurance becomes increasingly difficult to qualify for and more cost prohibitive the older you get, you may be better served by other options if you’re over 70 years old.
When you’re financially secure
Long-term care is a common need. But, you may already have the financial assets necessary to take care of that need if and when it arises. If you’re financially secure and have already planned for the additional cost of care you may face in retirement, long-term care insurance premiums may not be worth the cost.
Make sure you have access to the care you may need with a long-term care insurance policy now.
The bottom line
Long-term care insurance is an important product that can help many plan for the care they may need in the future. But there are times when buying a policy does – and doesn’t – make sense. Although it’s likely a wise idea to purchase coverage when you’re young and healthy, it may not be a good idea to buy a long-term care insurance policy if you already need care or you’re over 70 years old. Consider how coverage fits into your unique retirement and financial plans. And if you’re not sure whether or not you should buy a policy, reach out to an expert for help today.
CBS News
Tropical Storm Milton forms in Gulf; forecast to strengthen into hurricane headed toward Florida
Tropical Storm Milton has formed in the Gulf of Mexico and is forecast to strengthen into a hurricane headed toward Florida with possible impacts to its western coast, the National Hurricane Center said on Saturday. Maximum sustained winds are expected to be at 40 mph with higher gusts and Milton is currently moving north-northeast, NHC said in an advisory.
Milton is forecast to undergo a period of rapid intensification before it makes landfall as a Category 2 hurricane across Florida’s west coast, CBS News Miami reported.
The forecast comes a little more than a week after Hurricane Helene made landfall in Florida and across the Southeast, killing more than 200 people and causing immense destruction. President Biden on Thursday took an aerial tour of Florida’s Big Bend where Helene struck as a Category 4 storm. Hundreds of people are still missing and Mr. Biden said the work to rebuild will cost “billions of dollars” as communities suffer still without power, running water and passable roads.
NOAA
Milton is forecast to move across the southwestern Gulf of Mexico through Sunday night then across the south-central Gulf on Monday and Tuesday before reaching Florida’s west coast by the middle of the week, NHC said. Heavy rain is possible in the region starting Sunday into Monday, CBS Miami reported, and more rain and heavy winds will most likely arrive on Wednesday. Hurricane and storm surge watches will most likely be required for portions of Florida starting Sunday, the National Hurricane Center said.
Along with the heavy rainfall, the hurricane center said to expect risks of flooding.
Residents in the area should ensure they have a hurricane plan in place, the National Hurricane Center said, follow the advice of local officials and check back for forecast updates.
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A new Barbie has joined Mattel’s lineup of inclusive dolls. The first “Diwali doll” was announced by the toymaker on Friday, a few weeks shy of the Hindu holiday of Diwali, also known as the festival of lights.
The festival, which lasts for five days, is marked on Western calendars to begin on Nov. 1, but some celebrations start on Oct. 31.
The doll, created in collaboration with fashion designer Anita Dongre, features traditional elements including the lehenga skirt, floral print and golden shoes, according to Mattel’s website. The doll is available at major retailers for $40.
“The look is infused with beauty and symbolism to rejoice in victory of light over darkness with contemporary silhouettes,” the description reads for the Diwali doll.
Lalit Agarwal, country manager for Mattel India, said in a news release that through the Diwali doll, the brand is hoping to showcase “India’s vibrant cultural heritage on a global stage while continuing to celebrate the power and beauty of diversity.”
Earlier this year, Mattel announced the first-ever blind Barbie doll and a Black Barbie with Down syndrome.
In addition, to celebrate International Women’s Day on March 8 and Barbie’s 65th birthday on March 9, the doll brand announced it was adding new dolls to its Role Models collection, based on real-life singers and actresses from around the world. They’re not for sale – a one-of-a-kind doll was made for each of the honored women.
The dolls are meant to introduce “girls to remarkable women’s stories to show them you can be anything,” according to Mattel.
