The Cost of Waiting to Buy Long Term Care Insurance

The Cost of Waiting to Buy Long Term Care Insurance

When people begin looking at Long Term Care Insurance policies, there is often a tendency to put off the actual purchase until later down the road. While rushing the decision isn’t a wise move, waiting too long to buy can cost you, too, sometimes much more.

Looking Late

We spoke with a client last month who was beginning to look into buying Long Term Care Insurance. Carol lives in St. Louis, Missouri and after years of putting off buying a policy thinking she didn’t need it, she eventually realized it was a wide purchase. Considering the risk of needing long term care is quite high once you reach the age of 65, she conceded to the fact that it makes sense to protect her assets from that risk. At the ripe old age of 77, she sent us her information looking for a quote.

Carol began officially looking into plans in mid-April and we helped show her the various options. Despite the fact that few individuals would likely qualify for this kind of insurance at her age because of the high risk they pose to insurance companies, Carol was actually in excellent health. We sent her a binder with a quote comparison in the mail for her to look over. Exactly one week after LTC Tree mailed her a binder, Carol fell and broke her hip.

Tragic Timing

After finally realizing the importance of a Long Term Care Insurance policy, chances are it is now too late for Carol to ever qualify for a policy. Because she now has a broken hip on her record and she is 77 years old, the likelihood of a company insuring her is slim, even if she fully recovers from her hip injury. Now, rather than have the insurance company pay for the care needed to recover from breaking her hip, she is on her own when it comes to payment. If she ever needs care again in the future, once again, she will find herself paying out of pocket for that care. While this may be feasible for some people, the assets Carol has won’t last her long.

Because she only has $150,000 assets saved, her personal money will only take her so far. Her nest egg will cover the cost of two, possibly three years of care, depending on whether she receives it in a nursing home or at her own home. If she happens to need care for any longer than that during her lifetime, she will be out of assets and forced to either turn to a family caregiver or enroll in Medicaid due to her lack of assets.

Avoid Financial Devastation in 2016

Carol finally came to her senses at the age of 77, after recognizing the fact that long term care does pose a real risk to seniors’ retirement and it makes more sense to insure against the risk than it does to ignore it. Unfortunately, she waited just a little too long and the timing was devastating. This is a story that happens more than you might think, which is why we encourage consumers to look into Long Term Care Insurance in their 50s when they are still in good health and more likely to qualify health-wise for a policy.

If you are considering requesting a quote but haven’t done so yet, don’t hesitate. The quote we send you is completely free and there is no pressure to buy. Don’t just put the binder down and forget about it, though, because waiting too long may end up costing you big. Click here to learn more about Long Term Care Insurance or request a quote today.

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