Getting Long Term Care

When Should You Start Buying Long Term Care Insurance?

Figuring out the right age to start getting long-term care insurance is difficult, but as a rule of thumb, you should get one before 60.

The average age of people buying individual long-term-care insurance is 60, according to 2002 figures (the most recent available) from America's Health Insurance Plans. Many experts say that buying in your 50s can make sense, since you're more likely to be eligible for coverage than if you wait, and premiums will be easier to handle out of pocket.
The average annual premium for someone age 50 with a $150 daily benefit for four years (with a 5% compound inflation adjustment) and a 90-day elimination period was $1,134 in 2002, according to AHIP. For someone age 65, it was $2,346, and at 79, it was $7,572. Keep in mind, however, that while the annual premium is lower if you take out a policy while still in your 50s, you'll likely be paying it for a much longer time.

All of which makes for a complex calculation. Start young and you'll be paying for years before the likelihood of actually needing the coverage is significant. But if you wait too long, you may fail to qualify or be priced out of the market. What's right for you depends on your risk tolerance, your family health history, your personal health history and your finances.