The Best Age to Buy Long-Term-Care Insurance

From the mouths of babes

This is what happens when you let a child write an article about an adult subject.

If young Emily did the math on her more than $2 million comment she would begin to realize that whomever did her research had nary a clue.

Articles like this do more to harm the public than anything else

Mike Davis of WA @ Sep 03, 2008 10:30:46 AM

best age to buy

I totally agree with your other respondents both about Consumer Reports being the worst source for reliable, accurate and up to date unbiased information on long term care insurance and about the best age to buy. Also, whether or not one should buy long term care insurance has as much to do with family situation, preferences about care choices, desire to remain independent and at home for care, desire to leave an inheritance (no matter what size) and many other factors as it has to do with amount of assets. That is but one of many considerations. And the numbers cited here are way too high. I bought coverage in my early 40's and have complete peace of mind that my children will never be burdened with my care. I have no idea how much assets I'll have by the time I need long term care and whether I'll have enough to pay for it instead of having insured for it, but I'd still rather have insured for it.

If anyone wants objective information on planning for long term care, go to www.longtermcare.gov and order the US DHHS Long Term Care Planning Guide for free.

I also have an article on "The Best Age to Buy" if anyone wants me to post it here.

Eileen J. Tell of MA @ Sep 03, 2008 09:13:24 AM

Tell that to my Mom

Emily,

Mom and Dad had less than 200K but were very happy to avoid a nursing home and Medicaid for over two years and private pay in a facility of their choice. Not only would this not have happened without long term care insurance, the private assisted living Alzheimers Unit would not have admitted Dad with the assurance of payment via his limited long term care insurance policy. Consumers Reports may be a good source for mechanical efficiency and cost but when it comes to long term care insurance they have always had an agenda. That agenda is National Health Care.

You would do much better consulting any of those who have responded to your article before me or consult me. Write for my book. Long Term Care Insurance...The Complete Guide by Harry Crosby.

LTCauthor@yahoo.com

Harry Crosby of SC @ Sep 02, 2008 19:50:11 PM

The Best Age to Buy Long-Term Care Insurance

Emily,

While I understand that you're relying on an old Consumer Reports article that gets trotted out every few years, your reporting on this type of insurance will be upgraded if you read at least one more article, even if you don't do your own investigative reporting: MSN Money's online article by Sally Herigstad, published September 27th, 2007. This is a thoughtful article and was researched both inside and outside of the industry. There you'll learn that most financial experts recommend looking into this in your 40's and 50's, precisely because of the above responders' observations. If you look on the back of this year's Social Security statement, page 4 encourages us all to consider long term care insurance.

Eric Johnson, CLTC of CA @ Sep 02, 2008 19:11:26 PM

Who Should Buy Long-Term Care Insurance

I'm not going to attack Consumer Reports magazine because when I buy a washing machine or a digital camera, they are a trusted source I personally turn to. That said, their soundbite coverage of long-term care insurance will leave many with erroneous and mistaken information.

As Executive Director of the national organization dedicated to educating Americans about the importance of planning, let me try to share a few real facts.

But first, let's question the $2 million reference. It is true that someone with $2 million in assets has enough money to pay for long-term care. The question is, will they have enough in 10 years when costs are significantly higher? If they have investments, will they liquidate them? Will doing so leave their surviving spouse with enough to live on?

If you have $2 million today and live in a house worth $750,000 you could self insure. You certainly have enough cash to rebuild after a fire, flood or earthquake. But I'll bet 99% of people buy insurance because it's much smarter to pay a little to transfer the risk to someone else. And, with long-term care ... the risk is much greater than that of seeing your house burn down.

Let's look at some of their other mistatements. The average age of individual buyers of long-term care insurance (in 2007) was 58. And, 50 percent of buyers are between 55 and 65; 26 percent between 45 and 54.

People focus on the benefit of a lower price at younger ages. That's not the issue. With long-term care insurance, you are really leveraging your health. Individuals must health qualify for this protection and here's what Consumer Reports fails to tell people. Some 23 percent of people who apply between ages 60 and 69 do not health qualify (these are people who completed and submitted applications pre-screened by professional agents). Between ages 50 and 59 it's only 14 percent.

Equally important, insurers offer good health discounts that you lock in (meaning you don't lose them when your health changes). Between ages 40 and 49, 67 percent of applicants qualify. That drops to 52 percent for ages 50 to 59 and to 42 percent for ages 60 to 69.

There's an old saying about any type of planning and it's especially true when it comes to long-term care planning. It goes; failure to plan is a plan for failure.

The American Association for Long-Term Care Insurance (http://www.aaltci.org) has a wealth of meaningful information on it's website. There's also a Find A Local LTCi professional look-up where you can find local insurance agents.

The most important step in planning is finding out if you can health qualify and what coverage costs.

Only then can you make an educated decision to buy, to wait, to self-insure. And, that's what publications like Consumer Reports and US News should be advising people.

Jesse Slome

Executive Director

American Association for Long-Term Care Insurance

Jesse Slome of CA @ Sep 02, 2008 18:55:53 PM

Long Term Care Insurance

If Emily Brandon ever experienced anyone she knows and loves go through a long-term care situation, she would be singing a different tune.

I bought my policy at age 37. Why? Because I am a planner. I want my ducks in a row. One of my good friends, age 49, sufferd a stoke that he barely survived. His life is over, no job, no money, his home is gone and his 75 year old parents are now his full time caregivers. If I go to one more fundraiser for him I think I am going to get sick. The $150 dollars per month that I pay for my long-term care policy is short money to make sure my family and my daughter's life is not for ever changed like theirs.

I hope my insurance company takes every penny of my premium and I die in my sleep. It's insurance for God's sake, thats all. But as a planner, one who avoids risk, I know that I may also end up like my friend someday.

Shame on you Emily for speaking on topic you obvioulsy have no idea about. And worse, giving out wrong information. I hope your readers ignore your advise.

Ed Jette of MA @ Sep 02, 2008 15:52:52 PM

The Best Age To buy Long Term Care Insurance

Premiums are age based. Mathematically, the best time to buy LTC insurance is in your 40’s… but not many people do. Most people that age are dealing with mortgages and tuition, and have not focused on retirement plans.

Schneider & Shulman Associates recommend that you consider Long Term Care Planning in your 50’s. You will have a good chance of qualifying for preferred health rates which are discounted as much as 15%.

We have been asked by clients and brokers if it makes sense to wait 5 years to buy. The problem is that you will be at risk for change in health and rate increases for new applicants. Rates do go up for new…(not existing) buyers about every 2-3 years. A change in your health can effect your eligibility. Also, our plans include inflation options. If you wait 5 years you will need to consider a higher benefit. Five years of waiting could require a 25% higher benefit. We can show you in every case that even though you would save 5 years of payments, the net cost of the insurance would increase by 25 to 50%.

Our basic recommendation is to “lock-in” your premiums and your health and take care of this valuable planning as soon as and as inexpensively as possible. Call us for a free consultation and personalized comparison. Most of our clients are pleasantly surprised. Call toll free: 1-877-843-9582. Or visit us on line: www.ssltc.com

David Shulman, CLTC of NY @ Sep 02, 2008 15:24:46 PM

What a flippant article!!

Bad advice!

40s. you will spend more over time. Wrong! You'll spend less AND you and your family will be protected all the while.

50's...evaluate the importance of leaving assets to heirs. Wrong again. Evaluate the consequences of a LTC event on the emotional, physical, and financial well being of your family.

50's...how long your relatives tend to live. Ridiculous!

60's...run into insurability and affordability issues. Those issues occur at anytime, not just in your 60's.

Who Should Buy Long-term Care Insurance?

1)Anyone who correctly identifies the potential for incapacity and the objective risk of needing long-term care

2)Anyone who understands the value of avoiding Medicaid dependency and paying privately in order to obtain quality care at the appropriate level

3)Anyone who can find the income or resources to fund the premiums after giving the coverage an appropriate priority among competing spending alternatives.

Plan early. Save. Invest. Insure.

Richard A. Schafer of MN @ Sep 02, 2008 14:47:23 PM