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How to get cheap long-term care insurance in your 50s
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As you age you may encounter a wide range of additional healthcare expenses. That’s especially true when you find it difficult to handle basic daily tasks like cooking, cleaning and going to the restroom on your own. After all, home health aides, assisted living communities, and nursing homes are costly services.
That’s why some people in their 50s and nearing retirement may lean on long-term care insurance to make sure they can afford the care they could need later. But, long-term care insurance isn’t free. When you buy it, you’ll either have to make a large, up-front payment for single-premium long-term care coverage or make monthly premium payments.
In either case, most people want to make sure they get the most coverage at the lowest price possible. So, how do you get cheap long-term care insurance in your 50s? There are some strategic steps you can take now.
Find out how affordable long-term care insurance can be in your 50s now.
How to get cheap long-term care insurance in your 50s
Long-term care insurance is often much cheaper than long-term care services. With nursing homes costing six-figures per year and other forms of care in the tens of thousands of dollars annually, it’s generally a wise idea to insure against this risk. But, that insurance isn’t always inexpensive, either. Here are a few ways you can cut your long-term care insurance costs in your 50s:
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“The best way to reduce the cost in a long-term care insurance policy is to purchase as young as you can afford to,” explains Virginia Barausky, national director of sales for The Pinnacle Group, a firm that helps consumers and financial advisors with long-term care needs planning.
There are multiple reasons long-term care insurance is cheaper when you’re younger:
- Your health: Long-term care insurance companies know that there’s a lower chance of healthier individuals needing long-term care immediately than there is for those with health conditions. And, health often declines with age. So, applying in your 50s when you’re healthy could result in lower premiums than you would pay if you waited and a health condition popped up.
- More time to claim: If you purchase long-term care insurance in your 50s, there’s a high likelihood that you won’t need care shortly after. So, the insurance company may be able to collect premiums for a while before a claim is made. If you wait until later in life, the insurance company will have to gauge the risk of a claim event being closer on the timeline and price accordingly.
“So if you are healthy and can afford to purchase, in your 50s is the best time” to buy long-term care insurance, says Barausky.
Apply for long-term care insurance coverage today.
Carefully consider riders
Riders offer additional coverage on top of what your base long-term care insurance policy provides. But, they come with additional costs, too. For example, you can add an inflation-protection rider to make sure your benefits rise alongside inflation for an additional cost on top of your base premium each month. But, sometimes the cost of riders can push your premiums higher than you budgeted for. So, carefully consider riders before you add them to your policy.
For example, one way to save on inflation protection riders is to “see if they have a simple inflation rider instead of compound inflation,” explains Barausky. You may be able to save on an inflation protection rider altogether if you “start with a higher benefit” and avoid inflation protection completely. Compare the costs associated with these options before you choose one over the other.
Don’t buy more coverage than you need
Some common ways people purchase too much long-term care coverage include purchasing more benefits than they need and purchasing a longer coverage term than they need.
An effective “way to reduce cost is to shorten the duration of the coverage,” explains Barausky. “Many carriers have several options, such as a benefit duration of 3, 4, 5, 6, 7, and 8 years and lifetime unlimited.” So, if you can’t afford a lifetime long-term care insurance policy, consider shortening your coverage duration until you reach an affordable premium.
Also, consider your benefit value. After all, a $300,000 long-term care insurance policy will typically be far cheaper than a $500,000 policy. Think about how much care costs in your area and how much money you can afford to pay toward your care each year out of pocket. Then determine a reasonable amount of coverage for you based on the amount of money you actually need your insurance to cover.
Opt for a longer elimination period
Another way to save on long-term care insurance is to “opt for a more extended waiting period,” explains Omar Ochoa, founder of the Omar Ochoa Law Firm, a firm that specializes in insurance and other legal matters. “Known as the elimination period, it’s the amount of time that” benefits take to kick in. “The longer your waiting period, the cheaper your premium will be.”
So, think about how long you may be able to cover the cost of your care on your own and consider extending your elimination period to that point. This is a smart approach to take for those in their 50s, as the urgency of having coverage may not be as strong as it would be later in life.
The bottom line
Long-term care expenses are a common addition to the cost of living for older Americans. And, it’s typically wise to insure in advance. If you’re in your 50s and are in the market for long-term care insurance you should apply as soon as possible, carefully consider your riders, limit your coverage duration and cap to what you’ll actually need and consider a longer elimination period to keep your premiums low. Chat with a long-term care insurance specialist about your options today.
Legislation to expand Social Security benefits to millions of Americans passed the U.S. Senate early Saturday and is now headed to the desk of President Joe Biden, who is expected to sign the measure into law.
Senators voted 76-20 for the Social Security Fairness Act, which would eliminate two federal policies that prevent nearly 3 million people, including police officers, firefighters, postal workers, teachers and others with a public pension, from collecting their full Social Security benefits. The legislation has been decades in the making, as the Senate held its first hearings into the policies in 2003.
“The Senate finally corrects a 50-year mistake,” proclaimed Senate Majority Leader Chuck Schumer, a Democrat from New York, after senators approved the legislation at 12:15 a.m. Saturday.
The bill’s passage is “a monumental victory for millions of public service workers who have been denied the full benefits they’ve rightfully earned,” said Shannon Benton, executive director for the Senior Citizens League, which advocates for retirees and which has long pushed for the expansion of Social Security benefits. “This legislation finally restores fairness to the system and ensures the hard work of teachers, first responders and countless public employees is truly recognized.”
The vote came down to the wire, as the Senate looked to wrap up its current session. Senators rejected four amendments and a budgetary point of order late Friday night that would have derailed the measure, given the small window of time left to pass it.
Vice President-elect JD Vance of Ohio was among the 24 Republican senators to join 49 Democrats to advance the measure in an initial procedural vote that took place Wednesday.
“Social Security is a bedrock of our middle class. You pay into it for 40 quarters, you earned it, it should be there when you retire,” Ohio Senator Sherrod Brown, a Democrat who lost his seat in the November election, told the chamber ahead of Wednesday’s vote. “All these workers are asking for is for what they earned.”
What is the Social Security Fairness Act?
The Social Security Fairness Act would repeal two federal policies — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) — that reduce Social Security payments to nearly 3 million retirees.
That includes those who also collect pensions from state and federal jobs that aren’t covered by Social Security, including teachers, police officers and U.S. postal workers. The bill would also end a second provision that reduces Social Security benefits for those workers’ surviving spouses and family members. The WEP impacts about 2 million Social Security beneficiaries and the GPO nearly 800,000 retirees.
The measure, which passed the House in November, had 62 cosponsors when it was introduced in the Senate last year. Yet the bill’s bipartisan support eroded in recent days, with some Republican lawmakers voicing doubts due to its cost. According to the Congressional Budget Office, the proposed legislation would add a projected $195 billion to federal deficits over a decade.
Without Senate approval, the bill’s fate would have ended with the current session of Congress and would have needed to be re-introduced in the next Congress.
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Saturday is the winter solstice and 2024’s shortest day. Here’s what to know about the official start of winter.
The 2024 winter solstice, the shortest day of the year, happens on Saturday, Dec. 21, in the Northern Hemisphere. The celestial event signifies the first day of winter, astronomically.
What is the winter solstice?
The winter solstice is the day each year that has the shortest period of daylight between sunrise and sunset, and therefore the longest night. It happens when the sun is directly above the Tropic of Capricorn, a line of latitude that circles the globe south of the equator, the National Weather Service explains.
The farther north you are, the shorter the day will be, and in the Arctic Circle, the sun won’t rise at all.
How is the day of the winter solstice determined?
The winter solstice occurs because of the Earth’s tilt as it rotates around the sun.
When the Northern Hemisphere tilts away from the sun, the nights last longer. The longest night happens on the solstice because the hemisphere is in its furthest position from the sun. That occurs each year on Dec. 21 or 22.
This year, it falls on Dec. 21 at 4:21 a.m ET, to be precise.
On the summer solstice, when the northern tilt is closest to the sun, we have the longest day, usually June 20 or 21.
National Weather Service
The solstices are not always exactly on the 21st every year because the earth’s rotation around the sun is 365.25 days, instead of 365 even.
Will days start getting longer after the winter solstice?
Yes. Each day after the solstice, we get one minute more of sunlight. It doesn’t sound like much, but after just two months, or around 60 days, we’ll be seeing about an hour more of sunlight.
When will winter officially be over in 2025?
The meteorological winter ends on March 20, 2025. Then, spring will last until June 20, when the summer solstice arrives.
How is the winter solstice celebrated around the world?
Nations and cultures around the world have celebrated the solstice since ancient times with varying rituals and traditions. The influence of those solstice traditions can still be seen in our celebrations of holidays like Christmas and Hanukkah, Britannica notes.
The ancient Roman Saturnalia festival celebrated the end of the planting season and has close ties with modern-day Christmas. It honored Saturn, the god of harvest and farming. The multiple-day affair had lots of food, games and celebrations. Presents were given to children and the poor, and slaves were allowed to stop working.
Gatherings are held every year at Stonehenge, a monumental circle of massive stones in England that dates back about 5,000 years. The origins of Stonehenge are shrouded in mystery, but it was built to align with the sun on solstice days.
Andrew Matthews/PA Images via Getty Images
The Hopi, a Native American tribe in the northern Arizona area, celebrate the winter solstice with dancing, purification and sometimes gift-giving. A sacred ritual known as the Soyal Ceremony marks the annual milestone.
In Peru, people honor the return of the sun god on the winter solstice. The ancient tradition would be to hold sacrificial ceremonies, but today, people hold mock sacrifices to celebrate. Because Peru is in the Southern Hemisphere, their winter solstice happens in June, when the Northern Hemisphere is marking its summer solstice.
Scandinavia celebrates St. Lucia’s Day, a festival of lights.
The “arrival of winter,” or Dong Zhi, is a Chinese festival where family gathers to celebrate the year so far. Traditional foods include tang yuan, sweet rice balls with a black sesame filling. It’s believed to have its origins in post-harvest celebrations.
Researchers stationed in in Antarctica even have their own traditions, which may include an icy plunge into the polar waters. They celebrate “midwinter” with festive meals, movies and sometimes homemade gifts.