Best Age to Buy Long Term Care Insurance
When you are young and you look at the idea of picking up an insurance policy to cover your future health, the first thing you look at is probably the price of the premium you have to pay towards it. The truth of the matter is that it differs from one individual to another for a number of factors - like your age at the time of application, your medical history, the kind of coverage you are looking for etc. Clients often wonder at what the correct age might be to apply for a health insurance policy. Without any further ado, be informed that the optimum age at which to buy a policy is around the age of 55 years. The reasons for that are not far to trace. You will probably be able to pick up a policy when you are in relatively good health and enjoy substantial benefits of it. At a younger age, you can 'health - qualify', that is, you meet the health requirements of insuring companies with greater ease. You again also add to your policy coverage in the future if you choose one that offers that provision.
1.How Age Matters to Qualify for A Long Term Care Insurance?
That our general health will deteriorate as we advance in age is a given. Some applicants may already have certain pre-existing conditions which make it difficult for them to land a comprehensive coverage. It is therefore important to be aware of a few things from beforehand to find a policy suited to your circumstances.
- If you someone who keeps reasonably good health, chances are that you will attract a discount on the premium price you have to pay to your insurer.
- The good news is that once this discount slab is offered to you, it is frozen. This means that even if the conditions of your health change later in life, the discount will not be withdrawn.
- Different insurance companies follow different guidelines when it comes to determining whether or not you qualify. Should you have a certain medical history or are on some regular medicines, it is best to seek the advice of an insurance specialist. He will be able to guide to a product best suited to your circumstances.
- Even if you have been turned down many years ago in the past due to your medical history and circumstances, it may well be that you qualify for a policy now.
- The rate of refusing applicants the 'Good Health' discount rises with progress of age as a smaller percentage qualifies for it.
- The number of applicants who qualify for the 'Good Health' discount falls with passing age.
- The amount of money you will have to pay towards covering the premium cost is heavily dependent on the age at which you seek to buy th policy.
- Significant changes of rate revolve around your date of birth. While you may face only a 2 % to 5 % rise per year when you are between the ages of 50 years and 59 years, it can rise sharply if you are between 60 years and 69 years old. It could be as high as a 6% to 8% appreciation per year.
Records show us that in the year 2017, 26.5 % of individuals who purchased fresh insurance policies were below 54 years of age. Fifty-four percent of individuals who bought new policies were aged between 55 years and 64 years. This clearly reveals that the best age to buy a policy is in your mid-fifties, as soon as you can afford it.
2. Relationship between Your Age and The Discount Slab Which Applies to You
Apply for your Long term Care Insurance when you are in reasonably good health to enjoy the 'Good Health' discount. It is a money-saving feature which is not withdrawn from your policy even if your health conditions alter later in the future. The younger you are, the higher the chances of you qualifying for this discount.
- Between the ages of 40 years and 49 years - 62 % of applicants qualify for the 'Health Discount'.
- Between the ages of 50 years and 59 years - 46 % of applicants qualify for the 'Health Discount'.
- Between the ages of 60 years and 69 years - 38 % of applicants qualify for the 'Health Discount'.
Study the options before you if you have an outstanding health situation. It could very well mean that you are 'rated'. What that basically means is that you pay more for your premium. There are, of course, also instances when individuals cannot be insured at all as they do not the health requirements of the insuring company.
- Between the ages of 50 years to 59 years - 14 % of applicants were not able to qualify for insurance coverage.
- Between the ages of 60 years to 69 years - 23 % of applicants were unable to qualify.
As is clear, the percentage rises with the rise in age.
3. Why Postponing the Purchase of Your Long Term Care Insurance is Never A Good Idea
The longer you wait to pick up your Long Term Care Insurance policy, the steeper will the amount of money you will end up paying for it - it is as simple as that.
- At the age of 55 years, if you opt for a plan which offers you coverage of a 'Standard' nature, you will probably have to pay $1,084 per year. You will receive $150 for each day to cover the cost of benefits for a period of 3 years once you raise a claim. The current valuation of your benefit plan stands at $172,600. This valuation will rise to $ 276,000 in ten years, by the time you reach the age of 65 years. You also enjoy the 'Preferred Health' discount and the 'Spousal Discount' on such a plan.
- If you wait to buy your policy at the age of 65 years, chances are you will not qualify for the 'Good Health' discount. It can be a significant amount of money. You will have to pay $3,275 for a coverage of $276,000.
- If you wait to buy your policy till later, you are not insured in the interim period. This could turn out to be risky if you face any emergency medical situations. You will have to dig into your savings to cover the costs in such unforeseen circumstances - a situation less than ideal no doubt.
Hence, it is a no-brainer that it is a better idea to purchase your Long Term Care Insurance sooner or later, sooner than later. Pick up a policy after talking to an insurance expert. Compare the prices and the coverage offered by different schemes to make up your mind. If you cannot find all the information you need online, seek out the help of an informed and resourceful insurance specialist. He will guide you to a policy customised to your circumstances.
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