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.
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.