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LTCI Cost of Waiting
What Is the Potential Cost of Waiting to Purchase a Long-Term-Care Insurance Policy?
There is a time-honored phrase related to long-term-care insurance and it goes like this: "Your money pays for long-term-care insurance, but your health buys it."
As one ages, the risk of not being able to qualify for long-term-care insurance may increase due to deteriorating health.
In addition to the risks of health problems as we age, the dollar cost of long-term-care insurance rises dramatically because the insurer has less time to accumulate sufficient reserves to cover its part of the risk.
A complete statement of coverage, including exclusions, exceptions, and limitations, is found only in the long-term-care insurance policy. It should be noted that carriers have the discretion to raise their rates and remove their products from the marketplace.
Long-term-care premiums are based on your age at the time of application. This calculator assumes that premiums are 8 percent higher each year that you delay purchase. Individual policies may vary.
Skip Table InformationDescription | Amount |
---|---|
Current age: | 0 |
Annual premium for a long-term-care policy: | $0 |
Age you anticipate buying long-term-care insurance: | 0 |
Age you anticipate requiring long-term-care benefits: | 0 |
In this case, your premium at the higher age would be: | $0 |
The total cost difference now through the year when you expect to need benefits as a result of delaying the decision to acquire long-term-care coverage: | $0 |
Based on the information you provided, this chart illustrates the estimated annual costs of a long-term-care insurance policy now vs. waiting. Note that in many cases, your total cost for coverage may be lower if you purchase sooner at a lower premium than if you wait and pay a higher premium, despite the fact that you would potentially pay premiums for fewer years.
Cost of Waiting to Purchase Long-Term-Care Insurance
This hypothetical example is only an estimate and assumes that premium levels remain stable over time. This example does not represent any specific insurance policy or product. Actual results will vary.
This hypothetical example is used for illustrative purposes only. Actual results will vary.
This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
This material was written and prepared by Broadridge Advisor Solutions.
© 2023 Broadridge Investor Communication Solutions, Inc.