Long Term Care Insurance Age 65 Waiting Penalty Discussed

Jesse Slome, long term care insurance expert

Jesse Slome, long term care insurance expert

April 2, 2015, Los Angeles, CA –  A couple that waits to purchase long term care insurance until age 65 will pay nearly 70 percent more than had they considered coverage when they both were age 60.

“I tell consumers the sweet spot for long term care planning is between ages 55 and 65, but the sooner the better,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI).   Some was addressing mistakes people make when looking into long term care insurance.

According to the Association’s 2015 LTC Insurance Price Index, a 60-year old couple would pay $2,170 for good coverage that provided both spouses with about $165,000 of long term care benefits.  “The same coverage would cost the couple $3,590 a year, or 65 percent more, if they were age 65,” Slome explained.  “And, that is at today’s prices.  Someone who is age 60 today will likely pay more in five years because new policy rates tend to increase every year.”

Slome shared that many consumers perceive long term care insurance is ‘too expensive’ to buy.  “Many insurance agents simply focus on what I call a ‘fully loaded’ policy which of course makes the policy cost thousands of dollars,” Slome adds.  “If you can afford the coverage, more is always nice, but for most consumers a far more modest plan will be sufficient to meet their needs.  And, it will be far more reasonable.”

The long term care insurance expert noted that many agents only sell one or two long term care insurance policies a year.   “Many of the insurers now offer some really consumer-friendly benefit options such as the ability to buy more coverage in the future without having to meet health requirements,” Slome shares.  “An off-the-shelf approach speeds up the sales process but isn’t always in the customer’s best interest.”

The American Association for Long-Term Care Insurance is a national trade organization that strives to create heightened awareness and understanding about various options for paying for long term care costs.   To learn more about long term care insurance costs or to connect with a long term care insurance specialist call the organization at 818-597-3227 or visit their website at www.aaltci.org.



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