| A long-term care insurance question…read on:
CLIENT QUESTION:
At what age would you suggest a person take LTCI (Long Term Care Insurance) knowing that payment amounts increase as years go by and perhaps making the payments unaffordable?
MY RESPONSE:
This is really several questions in one. The proper age is when you are younger and healthier. I purchased long-term care insurance for myself at 45 years old. The older you are the more chance that the premiums will be unaffordable or that you may have a medical condition that would prohibit you from its purchase. The concept of affordability is a different question. Yes, you can anticipate that premiums will go up over time. My premiums have increased by 20% since I purchased my policy. You have to determine whether increased costs in the future will be affordable. Some will say yes and some will say no. You must also factor in that you may be able to afford the premiums while you are working but may not be able to after you retire. The higher the income you have, now and in the future, will translate into whether or not long-term care insurance is right for you.
If private insurance is not your answer, then Medicaid planning is something you should consider.
I hope this helps. |
