It is a lot like planning for retirement. Let’s say you purchase your LTCi policy when you are 50 and you will be paying premiums over the next 30 years. The average claim age is 80 years of age.
Sample policy of a customer… Age 53 and in perfect health.
When this person needs the policy… let’s say when they are 83, it will pay $9,710 per month for 5 years!! The swimming pool of money he can use is $582,539!!!
Can you guess what the premium is???
$156.75 Per month
Not a lot when you consider what you’re getting!!
Lastly, when the monthly benefit is paid for care, your premiums stop.
This sweet spot to purchase 45-60 is because you are never as young or as healthy as you are today.
If you wait to purchase until your mid 60s to late 60s, premiums go up 30 %, if you wait to purchase in your 70s, the premiums go up 50%. If you have 2 of the 6 activities of daily living in play…. You are uninsurable