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Is long-term care insurance worth buying in your 40s? Experts weigh in
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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.
The International Brotherhood of Teamsters says workers at seven Amazon facilities will begin a strike Thursday morning in an effort by the union to pressure the e-commerce giant for a labor agreement during a key shopping period.
The Teamsters say the workers, who authorized walkouts in the past few days, are joining the picket line after Amazon ignored a Dec. 15 deadline the union set for contract negotiations. Amazon says it doesn’t expect any impact on its operations during what the union calls the largest strike against the company in U.S. history.
The Teamsters say they represent nearly 10,000 workers at 10 Amazon facilities, a small portion of the 1.5 million people Amazon employs in its warehouses and corporate offices.
Amazon is ranked No. 2 on the Fortune 500 list of the nation’s largest companies.
At a warehouse in the New York City borough of Staten Island, thousands of workers who voted for the Amazon Labor Union in 2022 and have since affiliated with the Teamsters. At the other facilities, employees – including many delivery drivers – have unionized with them by demonstrating majority support but without holding government-administered elections.
The strikes happening Thursday are taking place at an Amazon warehouse in San Francisco and six delivery stations in southern California, New York City, Atlanta and the Chicago suburb of Skokie, Illinois, according to the union’s announcement. Amazon workers at the other facilities are “prepared to join” them, the union said.
“Amazon is pushing its workers closer to the picket line by failing to show them the respect they have earned,” Teamsters General President Sean M. O’Brien said in a statement.
“If your package is delayed during the holidays, you can blame Amazon’s insatiable greed. We gave Amazon a clear deadline to come to the table and do right by our members. They ignored it,” he said.
The Seattle-based online retailer has been seeking to re-do the election that led to the union victory at the warehouse on Staten Island, which the Teamsters now represent. In the process, the company has filed a lawsuit challenging the constitutionality of the National Labor Relations Board.
Meanwhile, Amazon says the delivery drivers, which the Teamsters have organized for more than a year, aren’t its employees. Under its business model, the drivers work for third-party businesses, called Delivery Service Partners, who drop off millions of packages to customers everyday.
“For more than a year now, the Teamsters have continued to intentionally mislead the public – claiming that they represent ‘thousands of Amazon employees and drivers’. They don’t, and this is another attempt to push a false narrative,” Amazon spokesperson Kelly Nantel said in a statement. “The truth is that the Teamsters have actively threatened, intimidated, and attempted to coerce Amazon employees and third-party drivers to join them, which is illegal and is the subject of multiple pending unfair labor practice charges against the union.“
The Teamsters have argued Amazon essentially controls everything the drivers do and should be classified as an employer.
Some U.S. labor regulators have sided with the union in filings made before the NLRB. In September, Amazon boosted pay for the drivers amid the growing pressure.
NEW YORK — The Teamsters union is launching a strike against Amazon at numerous locations across the country, including in Maspeth, Queens.
The Teamsters are calling it the largest strike against Amazon in United States history, and it’s set to begin at 6 a.m. Thursday. In addition to New York City, workers will be joining picket lines in Atlanta, Southern California, San Francisco and Illinois.
In a video announcement released Wednesday night, workers voiced their frustrations.
“Us being strike ready means we’re fed up, and Amazon is clearly ignoring us and we want to be heard,” one worker says in the video.
“It’s really exciting. We’re taking steps for ourselves to win better conditions, better benefits, better wages,” another worker in the video says.
The union says it represents about 10,000 Amazon employees and that Amazon ignored a deadline to come to the table and negotiate. The $2 trillion company doesn’t pay employees enough to make ends meet, the union asserts.
At the height of the holiday season, many are wondering what this means for packages currently in transit.
Teamsters President Sean O’Brien said, “If your package is delayed during the holidays, you can blame Amazon’s insatiable greed.”
Amazon says Teamsters are misleading the public
An Amazon spokesperson says the Teamsters are misleading the public and do not represent any Amazon employees, despite any claims.
“The truth is that the Teamsters have actively threatened, intimidated, and attempted to coerce Amazon employees and third-party drivers to join them, which is illegal and is the subject of multiple pending unfair labor practice charges against the union,” the spokesperson said in a statement.
An Amazon representative says the company doesn’t expect operations to be impacted.
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