CBS News
Is long-term care insurance worth buying in your 40s? Experts weigh in
Getty Images
As you age, it’s normal to start thinking about retirement and the joys and challenges that come with it. If you’re in your 40s, it may be some time before you retire. But, planning for that time now can have its benefits.
However, that involves more than simply deciding how much money you’ll save to maintain your current quality of life. There are also added expenses later in life. For example, most older Americans will need long-term care services. Those services include nursing homes and assisted living facilities, as well as home health aides and even adult day care.
And, those services can be expensive. The estimated average cost of a semi-private room in a nursing home in 2024 is $8,929 per month, according to Genworth. And, in 2050, when those in their 40s are more likely to need this type of care, Genworth estimates that the cost of a semi-private room will have climbed to $19,256 per month.
Long-term care insurance can help you pay that bill. But, is it worth buying in your 40s or should you wait until later in life?
Discuss your long-term care insurance options with an expert today.
Is long-term care insurance worth buying in your 40s?
Whether or not long-term care insurance is worth buying in your 40s depends your financial ability and how you perceive the benefits of buying this type of insurance when you’re young. Here are a few things you should consider as you make your decision:
Benefits of buying long-term care insurance in your 40s
There are several benefits to purchasing long-term care insurance when you’re in your 40s. First, purchasing this type of insurance at this age can lead to significant savings. While there are several factors that play a role in long-term care insurance premiums, two of the most important factors to consider are your age and your health.
When you purchase long-term care insurance in your 40s, rather than waiting, “it is significantly less expensive,” explains Virginia Barausky, national director of sales for The Pinnacle Group, a company that helps consumers and financial advisors plan for long-term care needs. When comparing premiums for a 45 year old and a 52 year old “the difference is 34% in cost just for waiting 7 years.”
“Premiums are age-based,” says Keith Bercun, regional sales director at the financial management firm, OneAmerica. “So, getting it at age 40, you’re going to get it at a much lower price than if you waited until you were 50 or 60.”
“Not to mention, at age 40, you’re generally going to be a lot more insurable than you will be in your 50s or 60s,” explains Bercun. “So, the chances of getting coverage are dramatically increased by doing it in your 40s.”
Finally, considering the fact that insurance companies must consider risk when writing policies, your long-term care insurance options may be limited as you age. “Typically, when people are in their 40s, their health is still good, which means they will have many options to choose from,” explains Kelly Augspurger, CLTC, trainer for Certification for Long-Term Care, an education company that offers certifications for long-term care insurance agents.
Get long-term care insurance now before prices go up.
Other considerations
While there are benefits to purchasing long-term care insurance in your 40s, there are also some drawbacks to consider:
- The cost: Long-term care insurance typically comes with monthly premiums. “Many folks simply do not have access to extra disposable income to fund a policy at this age,” says Barausky. Not to mention, “you’ll have to pay premiums for a longer period of time,” explains Steve Azoury, ChFC and owner of the financial planning firm, Azoury Financial.
- Inflation may limit your coverage: “If you buy a policy and you didn’t get enough benefit coverage and/or, you did not add inflation protection, you run the risk of buying a policy at age 40, not needing it until you’re 85, and you didn’t buy enough coverage – which can leave you dramatically under-insured at the time you use it,” explains Bercun. So, be sure to discuss inflation with an expert when purchasing a long-term care insurance policy in your 40s. An inflation rider may be needed.
The bottom line
Long-term care insurance is typically worth purchasing in your 40s. That is, as long as you can comfortably afford the premiums. The good news is that when you’re in your 40s, your premiums may be lower than they will be later in life. Not to mention, you’ll have a high probability of acceptance and plenty of options to choose from. Discuss your long-term care insurance options with a professional now.
NEW YORK — Former New York Gov. David Paterson and his stepson were attacked in New York City on Friday night, authorities said.
The incident occurred just before 9 p.m. on Second Avenue near East 96th Street on the Upper East Side, according to the New York City Police Department.
Police said officers were sent to the scene after an assault was reported. When officers arrived, police say they found a 20-year-old man suffering from facial injuries and a 70-year-old man who had head pain. Both victims were taken to a local hospital in stable condition.
In a statement, a spokesperson for the former governor said the two were attacked while “taking a walk around the block near their home by some individuals that had a previous interaction with his stepson.”
The spokesperson said that they were injured “but were able to fight off their attackers.”
Both were taken to Cornell Hospital “as a precaution,” he added.
Police said no arrests have been made and the investigation is ongoing.
The 70-year-old Paterson, a Democrat, served as governor from 2008 to 2010, stepping into the post after the resignation of Eliot Spitzer following his prostitution scandal. He made history at the time as the state’s first-ever Black and legally blind governor.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
A 17-year-old boy was critically injured and a person is in custody after a gunman opened fire on a SEPTA bus in North Philadelphia Friday evening, police said.
At around 6:15 p.m., Philadelphia police were notified about a shooting on a SEPTA bus traveling on Allegheny Avenue near 3rd and 4th streets in North Philadelphia, Inspector D F Pace told CBS News Philadelphia.
There were an estimated 30 people on the bus at the time of the shooting, Pace said, but only the 17-year-old boy was believed to have been shot. Investigators said they believe it was a targeted attack on the teenager and that he was shot in the back of the bus at close range.
According to Pace, the SEPTA bus driver alerted a control center about the shooting, which then relayed the message to Philadelphia police, who responded to the scene shortly.
Officers arrived at the scene and found at least one spent shell casing and blood on the bus, but no shooting victim, Pace said. Investigators later discovered the 17-year-old had been taken to Temple University Hospital where he is said to be in critical condition, according to police.
CBS Philadelphia
Through their preliminary investigation, police learned those involved in the SEPTA shooting may have fled in a silver-colored Kia.
Authorities then found a car matching the description of the Kia speeding in the area and a pursuit began, Pace said. Police got help from a PPD helicopter as they followed the Kia, which ended up crashing at 5th and Greenwood streets in East Mount Airy. Pace said the Kia crashed into a parked car.
The driver of the crashed car ran away but police were still able to take them into custody, Pace said.
Investigators believe there was a second person involved in the shooting who ran from the car before it crashed. Police said they believe this person escaped near Allegheny Avenue and 4th Street, leaving a coat behind.
According to Pace, police also found a gun and a group of spent shell casings believed to be involved in the shooting in the same area.
“It’s very possible that there may have been a shooting inside the bus and also shots fired from outside of the bus toward the bus,” Pace said, “We’re still trying to piece all that together at this time.”
This is an active investigation and police are reviewing surveillance footage from the SEPTA bus.