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. 

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, three dogs and 6 ducks.