Why Now?
Buying LTC Insurance NOW Makes Financial Sense!
Age and health as factors:
Qualifying for coverage and the premiums you pay are directly linked to age and health at the time you apply
for coverage. Apply as early as possible so you avoid the risk you won't qualify later if your heath
changes or you have an unforeseen accident.
Cost of waiting to buy LTC insurance:
The longer you wait, the bigger the disparity in the annual premium. As you get older the cost of waiting grows dramatically,
despite the fact premiums will be paid for less years. The increased premium rate per year as a result of waiting will increase the total premiums paid during the lifetime of the policy.
Breakeven point for LTC Insurance is exceptionally low:
Most policies cover their total premium costs paid within 45-75 days of care - about a 1 1/2 - 2 1/2 months once benefits start!
Tax credits and deductions:
There are significant state and federal tax credits and deductions availiable now to reduce your premium costs signficantly.
LTC insurance inflation protection leverages the buying power of your LTC benefit:
Your LTC insurance total benefit is much more than most people will be able to save to cover long-term care expenses or invest
for this purpose.
Illustration below highlights that purchasing insurance is wiser than investing the same amount of money when it comes to covering long-term care expenses. For example, consider what you could do with $210.51 per month (insurance vs. investing)
DOLLAR CONTRIBUTION TO INSURANCE OR SAVINGS/INVESTMENTS
SAVINGS/INVESTMENT RETURNS
LTC INSURANCE COVERAGE (available at any age)
LTC INSURANCE COVERAGE (available after 20 years)
If you invested $210.51 a month for 20 years, with an average annual yield of 8% compounded monthly:
At the end of 20 years, you will have saved $128,848 to spend on long-term care services. Additionally, you would have to wait the full 20 years to accumulate that amount, and you could need long-term care services before then.
If you took the same $210.51 and used it to pay monthly premiums for a Long-Term Care insurance policy:
The overall amount of money set aside is the same - $50,552 for both options - the insurance-based example will give you $236,152 more than your cash outlay to cover long-term care services (total lifetime benefit of $292,000). You would have access to the full amount once you became eligible for benefits. With inflation protection added to your plan, after 20 years you will have estimated $871,803 more than your original cash outlay to cover long-term expenses.
The overall amount of money set aside is the same - $50,552 for both options - the insurance-based example will give you $236,152 more than your cash outlay to cover long-term care services (total lifetime benefit of $292,000). You would have access to the full amount once you became eligible for benefits. With inflation protection added to your plan, after 20 years you will have estimated $871,803 more than your original cash outlay to cover long-term expenses.
Buying LTC Insurance NOW Makes Financial Sense!