When is the best time to buy long-term care insurance?

DATE | 06/10/24
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The answer

You’ll never be younger or healthier and two things—age and health—determine your long-term care insurance (LTCi) premium costs.

Neither health insurance nor Medicare pay for long-term care services. Medicaid is only available to those who meet certain financial and health requirements. Rules and services for Medicaid also vary from state to state. Unless you have LTCi coverage, you will need to pay for extended care with your personal savings and assets.

Genworth’s Cost of Care Survey’s 2024 estimate for a semi-private room in a nursing home facility is $9,859 per month ($118,298 annually). The cost for a home health aide is estimated to be $6,250 per month ($72,505 annually).

Many people seriously underestimate the costs of long-term care. Understanding the true costs can help families plan ahead for how they will pay for these services before they need them.

Fortunately, LTCi policies can be tailored to cover varying circumstances and budgets. When deciding which coverage you’ll need, consider:

  • How much you can afford to contribute toward the expense of your care.
  • How long might you need LTC services.
  • How much time will pass before you need to start receiving benefits from the policy.

Associates of Clifton Park is our long-term care partner. They can help you make informed decisions about your long-term care insurance options.