When to Buy Long Term Care Insurance

When to Buy Long Term Care Insurance: LTC Planning & Costs

How Much Does LTC Insurance Cost?

If you need long term care, paying out of pocket for your care is often devastatingly expensive (as outlined in Genworth’s annual Cost of Care analysis). As such, long term care insurance offers a much less costly solution for your required care.

To help you better understand how policies are written, the cost of long term care insurance is determined by a number of factors, including:

  • Age: How old you are when your policy is issued. The sooner in life that you purchase your policy, the lower the insurance premium you will lock in and less expensive your policy will be.
  • Health: It pays to be in good health; applicants with preferred health status may be eligible for discounts upwards of 8-10%.
  • Your Specific Plan: LTC insurance is highly-customizable, so the more comprehensive the policy benefits and plan you and your LTC broker select, the higher the overall insurance policy cost.
  • Relationship Status: If you are married or have a partner, you may be eligible for discounts if you apply jointly.
  • Group Policies: Applying as part of a larger group may enable you to qualify for special long term care policy discounts, so be sure to ask your employer or any professional groups/associations you may belong to about their long term care planning.

Once these factors are accounted for, policies are then designed around four primary components:

  1. Monthly Benefit: The amount you would like to receive each month.
  2. Duration of Benefit: The amount of time your monthly benefits will be payed out.
  3. Elimination Period: The amount of time you are willing to wait before your monthly benefits begin.
  4. Inflation Protection: The growth rate of your benefits over time.

Ballpark Costs of Long Term Care Insurance

The following long term care insurance rates will help give you a ballpark of the premium you can expect from a LTC policy. As mentioned earlier, it’s important to remember that LTC policies are highly customizable, so it’s best to speak to an insurance professional for a more accurate quote.*

Single Female

Age Annual Premium Estimate
40 $1,291
50 $1,323
65 $2,548

Single Male

Age Annual Premium Estimate
40 $1,704
50 $1,725
65 $2,989

Married Female

Age Annual Premium Estimate
40 $920
50 $932
65 $1,323

Married Male

Age Annual Premium Estimate
40 $920
50 $932
65 $1,323

*Policy assumes $100/day daily maximum and 3 year benefit multiplier for all estimates. Premium estimates for Married Female and Married Male assume partners are the same age. 


In Other Words: Buying LTC Insurance Now Can Make a Difference


If you’re young, healthy, and active, a long life could well be in your future. Planning for that future is a necessity, and knowing when to buy LTC insurance is key to lessening the financial burden of care. In line with the factors listed above, Schneider & Shulman Associates recommends buying long term care insurance when you’re young, healthy, and active, for three primary reasons:

  1. Cost: Coverage is cheaper now.
  2. Selection: You’ll have more options now.
  3. Opportunity: Later may be too late.


Long Term Care Coverage Is Cheaper Now

If you buy long term care insurance today, you will lock in your rate. If you wait to buy, long term care insurance premiums will increase significantly.

Insurance premiums are designed to remain the same each year. This means that the younger you are when you first buy a policy, the lower your annual premium will be.


You Have More Policy Options Now

If you wait to purchase Long Term Care Insurance, you could also be more limited in your options because of increased age and a change in your health status. Preexisting conditions can limit the type and amount of coverage you can get.


Buying LTC Insurance Later May Be Too Late

Age isn’t the only reason you might need long term care. Although most people who need long term care are older, a catastrophic accident or lifelong disability can strike a person of any age. In fact, 40% of people currently receiving long term care are adults 18 to 64 years old and at least 70% of people over age 65 will require some long term care services at some point.

Many people are starting to realize these chilling facts and make decisions to protect themselves. The American Association for long term care Insurance reports that the average age of long term care insurance buyers is now just 58 years old. Ask your peers about long term care insurance and you’re likely to find someone who’s already made the smart decision to purchase a policy.


No matter how old you are when you purchase a plan, a lifetime of premiums will always be less expensive than one year of long term care.

Schneider & Shulman Associates can help you determine when to buy long term care insurance and get you on your way to developing a Long Term Care Plan today! Fill out our Free Quote form or call our toll-free number to speak with a qualified representative about long term care insurance.