It’s Long-Term Care Awareness Month, and it might also be time for you to purchase your insurance policy. Insurance can be costly and confusing, but it’s also necessary to avoid wiping out your retirement savings. Knowing what you need to buy and the best time to purchase is crucial.
Consider this: The national median daily cost for a private bed in a nursing home in 2021 is $299 a day, or $109,026 a year. A yearlong stay in your own room at an assisted living facility runs $53,148.
So, what’s the right age to buy a long-term care insurance (LTCi) policy that keeps premiums competitive while saving you money on total premiums paid over the life of the policy? Assuming you’re still in good health and eligible for coverage, the optimal age to shop for a policy is between 60 and 65. It’s suggested that couples start looking about five years earlier. You risk being at greater risk of rejection for coverage because of poor health by waiting extra years.
Not everyone needs an LTCi policy, so it’s essential to ask some questions:
- Health history. Do family members have hereditary conditions?
- Long-term care. Have other family members needed assisted living or nursing care?
- Can you afford to pay out of pocket, or are you willing to liquidate to pay for long-term care?
- Risk tolerance. Are you risk-averse or uncomfortable with unknown future costs?
As your dedicated financial professional, we believe you should be having conversations about your long-term care intentions once you reach age 50. If you’re ready to start the conversation, reach out to us at (603) 261-3736.
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.