Sometimes in life waiting makes sense. However, when it comes to preparing for retirement, planning and acting sooner is often better. Many people ask us when the right time is to explore Long Term Care Insurance options. Our philosophy is simple. Tackle Long Term Care Insurance as soon as you’re “financially ready”. We define “financially ready” as someone who can cover day to day expenses without stress, limited debt, and has a plan for their financial future.
Here are examples of client cases we’ve worked on over the years.
Financially Healthy Already
For the first case study, let’s call our clients Mr. and Mrs. X. They were referred to us by their financial advisor and we started the conversation while they were in their early 50’s. At the time, they were healthy, contributing to a retirement plan and their other financial obligations were very manageable. Additionally, they had their son’s college education fully covered, relieving them of one less financial concern. We considered them very “financially ready” to tackle LTCI. After educating them on several options, doing a handful of quotes and having a few discussions, Mr. and Mrs. X purchased a Long Term Care insurance policy. They obtained good ratings because their health was excellent, and manageable premium payments because of their ages.
Still Saving For Kids’ College
The second case study is another client whom we’ll refer to as Mr. Y. He was in his mid-50’s, single and relatively healthy. We discussed his financial situation and obligations and determined he had a good handle on things but was still contributing to college tuition for his two daughters. After reviewing some quotes, he decided he wasn’t ready to tackle Long Term Care insurance. Mr. Y circled back to us 5 years later to revisit LTCI. Both his daughters had graduated from college, and he felt more at ease taking on the premiums for Long Term Care insurance. We presented updated quotes and designed a plan that met his goals. In the end, he applied and obtained a policy, albeit with slightly higher premiums than we presented 5 years earlier. For Mr. Y, waiting longer to feel “financially ready” was right for him, even with the slightly higher price tag. And fortunately, in his case, his health had not changed, and he was able to still qualify for a policy.
A Delay That Was Costly
Our third case study involves a gentleman we’ll refer to as Mr. Z, who was referred to us by his financial advisor—his brother. Mr. Z’s brother was aware of his financial situation and knew it was the right time to start exploring Long Term Care insurance options. Mr. Z was “financially ready,” but he was hesitant because he thought he was too young to buy a policy. At 53, he felt that none of his friends were considering it yet. Despite his brother’s advice, Mr. Z decided to wait until he was closer to age 60 to revisit his options. However, at 57, Mr. Z was diagnosed with Parkinson’s disease. Unfortunately, due to his diagnosis, he is no longer eligible for coverage and will now have to self-insure and pay for his care out of pocket. This case underscores the point that you never know what circumstances may arise that could disqualify you from coverage. The most important factor in securing Long Term Care insurance is being financially prepared—not the age at which you apply.
Financially Ready And Acted Quickly
Our last case study hit close to home. The founder of our company, Murray, decided to buy his policy at the age of 49. His children had just finished college and he had saved for the last 30 years for retirement. Fast forward 8 years later, Murray suffered a stroke at the age of 57. Had he waited longer to buy his policy, he would have become uninsurable. Luckily, he had the foresight to buy his Long Term Care policy at the time that he did.
Act When You’re Financially Ready
The above studies emphasize the importance of planning sooner than later. It’s not about your age or when you think it is the right time to start to plan for Long Term Care. It’s about being financially ready. We understand that financially preparedness looks different for each client, and that’s completely understandable. However, success hinges on proactive planning and being well-prepared for the future. This includes understanding your Long Term Care insurance options and selecting the ones that best suit your individual needs. If you have questions about Long Term Care Insurance, please contact us.
To help determine if long-term care (LTC) insurance is right for you, we are offering a FREE informational guide. This is a comprehensive booklet that will answer many of your questions about LTC and assist you with your health care planning.
To help determine if long-term care (LTC) insurance is right for you, we are offering a FREE informational guide. This is a comprehensive booklet that will answer many of your questions about tax breaks and incentives for LTCI for federal and state taxes.