When Should I Buy Long Term Care Insurance?

When Should I Buy Long Term Care Insurance?Long term care insurance is bought with your good health. The right time to purchase coverage is:

  • when you are concerned enough to plan for your future,
  • you have decided that you do not wish to burden family with having to worry about providing your care, and
  • you are healthy enough to qualify for the coverage.

There are two important reasons to consider buying coverage sooner rather than later:

  • The cost of long term care insurance is based on your age and your health when you apply. Thus, the younger and healthier you are, the more affordable your policy will be.

Second, and most important

  • As you grow older, your health will undoubtedly change. It will become more difficult to qualify for coverage once you have had a change in your health.

True Cost of Waiting to Buy

If you decide that long term care insurance is the right decision to protect your assets and your family's financial future, the best time to plan might be now.
In so doing:
• You may avoid the risk of your health changing to make you uninsurable in the future • Your rates will be lower today due to your age being younger at time of purchase
The tables below show the INFLATION ADJUSTED cost of waiting to buy long term care insurance later assuming your health does not change over the years.
(Sample premiums, Age 53, preferred health discount, partner discount, $150 daily benefit, 5% compound automatic inflation, 4 year benefit period)

*Age of Purchase *Inflation Adjusted Daily Benefit *Annual Premium *Cumulative Premiums Paid to Age 90
53 $150 $1177 $43,549
55 $165 $1334 $46,706
57 $182 $1596 $52,664
59 $201 $1897 $58,804
61 $222 $2316 $67,175
63 $244 $2883 $77,841
The True Cost of Waiting to Buy Long Term Care Insurance

As you can see when accounting for inflation and increases in cost due to age, it is less expensive to plan sooner rather than later.  The cost to buy long term care insurance may only increase as you grow older.
Delaying your application for 5 or 10 years from today only means that you might have to purchase a higher benefit at your older age to keep up with inflation.  Or you might have to opt for more co-insurance to keep your premiums affordable for you.
Also, your health history may change as the years go by resulting in coverage no longer being unavailable for you.

Let Me Help You Get Approved For A Policy

Give me a call today to discuss your specific situation.  I can help guide you through your options, and get your application approved with a top-rated company.
If you have any questions about this or any other insurance, call me at 613.286.6841 or e-mail me info@AndrewWBradley.ca.
The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. I recommend that you obtain your own independent professional advice (preferably me) before making any decision in relation to your particular requirements or circumstances.
Author: Andrew W Bradley


OTTAWA'S RETIREMENT PLANNING BLOG If you have questions about retirement or financial planning then take a look here. Tons of articles & information on Canadian financial planning topics such as life insurance, investing and more. There are still a lot of misconceptions about money & retirement planning. I just want to help you retire when you want and how you want. As a Registered Retirement Consultant-RRC® and independent adviser, I share my unbiased knowledge to help you have a better understanding of investing, insurance and financial planning. Getting on track for retirement doesn't have to be confusing or complicated. Get the information you need to avoid mistakes and be Ready For Retirement!