When to purchase long-term care – it may be earlier than you think!

When to purchase long-term care – it may be earlier than you think!

Over the last century, the average lifespan has lengthened considerably. Human beings are living decades longer, thanks to improved sanitation, better medical care, and advancements in health and medicine. While incredible strides have been made in life expectancy, the news of increasing average lifespans may be an important financial wake-up call.

Because people are living longer, it’s entirely possible, at some point, you may need long-term care. Though the elderly often come to mind when considering those who need long-term care, there is a “sweet spot” in terms of age for buying, and it’s important to consider when the right time may be. It may be earlier than you think.

Though it’s true that most claims may begin while you are in your 70s or 80s, if you are younger when you purchase long-term care insurance, there is a good chance the cost will be lower in the long run. However, if you buy too early, you may spend a long time paying premiums that could otherwise be avoided.

It is generally recommended by financial professionals to take out a policy for long-term care insurance in your mid-50s, or at the very latest, your mid-60s. This is widely considered to be the “sweet spot” – the most cost-effective time to buy.

One reason for this is because many health insurers will offer discounts on policies for buyers who are in particularly good health, and once the policy is purchased, those benefits cannot be lost. Buying younger – while still in relatively good health – may provide you with a discount that otherwise may not be available in the future.

Buying at a younger age also provides peace of mind, in the event that you do need long-term care before you expect to. Paying out of pocket for unforeseen medical expenses can cause an enormous amount of stress and emotional turmoil for families who have already been blindsided by an unexpected diagnosis or accident.

Investing in long-term care early gives you the simple gift of being insured, and, in turn, can allow your family to focus on helping and supporting you, without an overwhelming financial burden. Let the professional team at Ambassador Advisors walk alongside you on this planning journey. Begin a conversation with our team today!

Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purposes of avoiding penalties that may be imposed by law. Each tax payer should seek tax, legal or accounting advice from a tax professional based on his/her individual circumstances.
This material is for informational purposes only. Neither APFS nor its Representatives provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions. Information has been obtained from sources believed to be reliable and are subject to change without notification. The information presented is provided for informational purposes only and not to be construed as a recommendation or solicitation. Investors must make their own determination as to the appropriateness of an investment or strategy based on their specific investment objectives, financial status and risk tolerance. Past performance is not an indication of future results. Investments involve risk and the possible loss of principal.

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