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Long-term care insurance and the old age myth

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Kelly BehnkeThere’s a common misconception that you don’t need to start thinking about purchasing long-term care protection until you retire. In fact, most people under age 50 think of it as something to put off into the future. But waiting can be a costly move.

The truth is that long-term care insurance (LTCi) premiums are based on your age when you apply. For younger people, costs increase at about 1% for each year you wait. As you age, premium costs grow to 8­–9% for each year you wait. Insurance companies offer incentives for individuals who are in good health when applying for long-term care coverage. So, you will pay less if you purchase insurance when you are younger and in good health.

Another reason to start young is that it increases the likelihood that you'll qualify for LTCi. According to the American Association of Long-Term Care Insurance, fewer than 10% of people under age 50 are turned down for LTCi, compared to nearly 25% for those age 60–69 and 45% of those 70–79. For example, if you have a chronic illness, such as Alzheimer's disease or Parkinson's, you will be rejected.

Lastly, although being older increases the chances of needing long-term care, an accident or illness at any age could result in the need for long-term care services. Without LTCi, your financing options would be limited.

Find out more about LTCi and why you should consider this important coverage by calling 1-800-279-4010 or scheduling a personal phone consultation.

Program administered by LTCi Marketing Administrators, (LiMA).

Kelly Behnke, CIC, CISR, ACSR
Personal Insurance Consultant