When to apply for LTC insurance
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: Does it make sense to apply for long term care insurance now at age 45 or should I wait until I retire?
A: About one in three applications for Long Term Care insurance is declined, primarily because the applicant waited too long to apply for coverage. The total lifetime cost is the same regardless of when you apply, so it usually makes sense to apply early to spread out the payments and to ensure that you will qualify. The actual dollar cost can vary dramatically. For example, a policy might cost $500 per year now but cost $5000 per year if you wait until you retire. The difference is just due to the number of years you pay the premium. To offset the risk of paying for a longer time, policies now offer a protection feature in the event that you do not need the coverage that allows your heirs to recover the cost of the policy.
Summary
More resources:
www.wealthmanagment.us.com
FreedomBenefits.net