One of the most common questions people have when considering long-term care insurance is when to start a policy. The last thing anyone wants, especially in an economy that is teetering on the edge of a recession or increasing inflation is to spend money on something they don’t really want or need, at least not at that time.
While you never know what tomorrow is going to bring, most of us plan based on averages, expectations, and perhaps hope. That means nobody in their 40s or 50s is counting on needing long-term care for the next five or 10 years, at least.
Does that mean you should discount a long-term care insurance policy in your 40s? No, it doesn’t mean that at all. However, not everybody in their early to mid 40s really needs to think about a long-term care insurance policy at that stage in his or her life.
So, when should you start a long-term care insurance policy?
Everyone is different. One person may have a family history of serious health issues that makes a clear he or she will likely deal with something similar in the next five or 10 years. Even though they might have just turned 40, it may bode well for them to start a policy as soon as possible.
Another person may have almost no family history of serious health issues, including cancer, lung disease, heart issues, or anything else until they are in their 70s or 80s. Should that person also start a policy in their 40s?
The target age (or ‘sweet spot’) for the average American is around 55. That means, by the time you’re 55 years of age, you should have started a long-term care insurance policy to protect you and your spouse or other dependents.
Why this age?
If you wait until you’re in your 60s, you may have certain health issues or there could be other factors, like family history, that will cause you to be denied a policy. The longer you wait, the greater the risk of being denied coverage.
That’s not the only factor, though. You also have to think about the cost. If you wait until you’re 58 or 59, for example, you may find that a long-term care insurance policy is going to cost you much more than if you had started when you were 55 or a bit younger.
While it’s not a hard and fast rule, for the most part, the sooner you begin a policy, the more affordable it’s going to be.
But what if you never use long-term care?
Let’s put it this way: would you want to pay $100,000 or $300,000 out-of-pocket for long-term care? Most people wouldn’t, and they have no clue that’s how much some types of long-term care can cost, and the price is only going to go up from here.
If you never use long-term care, that’s going to be a wonderful blessing for you. However, as more people live longer, well into their 80s and 90s, it becomes increasingly likely they will require some type of long-term care in the future.
If you or a loved one are considering Long-Term Care Insurance in Carmel Valley CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
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