Long-term care insurance: Why those in their 70s should act now

Dependence insurance is not a product that most young adults rush to get their hands on. However, the need for this type of insurance grows exponentially with age. Once you reach 65, you have a Significantly increased need for long-term care assistance. So if you’re 70 and don’t yet have coverage, now is the time to act.

After all, being able to afford long-term care services can be a challenge. Even the least expensive long-term care support can cost you tens of thousands of dollars a year. And if you need the kind of support that retirement homes provide, you could end up paying more than $100,000 a year for this care. That’s why people in their 70s should consider taking action now.

Lock in your long-term care insurance coverage now before it’s too late.

Long-term care insurance: why septuagenarians should act now

While the optimal time to take out long-term care insurance is generally when you are in your fifties, it’s an even more important consideration when you’re 70 years old. In fact, if you’re 70 and don’t yet have a plan to cover your long-term care costs, you should take out a policy now. Here’s why:

Long-term care costs likely to only rise

Long-term care services are expensive. Current costs for this type of support range from tens of thousands of dollars to over a hundred thousand dollars per year. And unfortunately, this cost is not expected to drop.

Health services – like long-term care – are not immune to the impact of inflation. And lately, inflation rates were higher than expected. According to the Bureau of Labor Statistics, medical care services were 2.1% more expensive in March than a year earlier. As prices continue to rise, it will likely become even more difficult to access adequate long-term care services in the years to come.

And at age 70, you could be on a fixed income. So you may find it impossible to meet the rising cost of long-term care without the help that an insurance policy can provide.

Take out long-term care insurance now to be sure you can cover the increasing cost of care.

Long-term care insurance will only get more expensive

Long-term care insurance companies must consider the financial risk associated with writing insurance policies. In turn, these policies tend to be accompanied higher premiums as you age. So by acting now, even if you’re 70, you’ll likely get better premiums than you could access in years to come.

“An individual who applies for a LTC insurance policy at an older age will have a shorter window of time before filing a claim to access their policy benefits,” explains Lori Martin, CLTC and LTC certification trainer. Long Term, a company that provides certifications for long-term care insurance agents. As a result, she says, “the LTC insurance company doesn’t collect as much premium and the premiums aren’t invested over a longer period of time.” This results in higher premiums for older applicants.

And insurers must take into account health problems that may arise later in life. “Older adults may have health issues later in life that are not discovered during the underwriting process,” Martin says. Thus, additional risk is involved for the insurer, generally resulting in a higher cost for older applicants.

Coverage options may become more limited

As you age, your options for long-term care insurance coverage will likely begin to diminish. And if you wait too long after age 70, you may not be eligible for coverage at all.

“A barrier for this age group is acceptance since the rejection rate at age 70 is around 50%,” says Afik Gal, co-founder and president of Assured Allies, a financial planning and management company. insurance for the elderly. But you can still have adequate coverage options if you act quickly. So you shouldn’t wait to buy coverage.

The essential

Long-term care insurance is an effective way to plan the cost of your care in the future. However, as you age, the cost of this insurance may increase and the availability of suitable policies may decrease. The good news is that you can still have quality coverage options, even at age 70. But it’s important to act now to ensure you don’t miss the opportunity to buy a policy and, when you do, get the lowest possible premiums.