Long-Term Care plans are generally available up to about age 79. There are both advantages and disadvantages to purchasing Long-Term Care at various ages.

The optimal time to purchase Long-Term Care Insurance is typically in your 50’s and early 60’s. This is because:

• It’s more affordable than waiting until you are older
• You are more likely to meet the insurer’s health requirements
• Provides adequate time to develop your financial strategy

Purchase age can also be influenced by what type of Long-Term Care plan you choose. A traditional plan, where you pay premiums every year until you go on claim, can be lower in cost if you are buying it when you are younger, in your 40’s let’s say. However, you can be paying that premium for a very long time and ending up with a very high total cost.

Purchasing a traditional plan when you are older can mean higher premiums but, in most cases, you are paying those premiums for a lesser amount of time. Qualifying for Long-Term Care Insurance when you are older, however, can be a challenge. As an example, a female at age 45 will pay $2,865/year for a Long-Term Care plan with a $4500 monthly benefit for 3 years with 3% inflation. At age 55 her premium would be $3,591 and at 65 her premium would be $5,174.¹

Hybrid Life + LTC plan premiums are typically paid in a single payment or over 5, 10 or 15 years requiring more premium dollars up front. Purchasing a Hybrid Life + LTC plan at a younger age is ideal since premiums are guaranteed not to increase and you are paying premiums for a relatively shorter timeframe. These plans, however, require large premiums and having the money to put into these types of plans at a younger age can be difficult. As an example, a female at age 45 will pay $4,623/year for a 10-pay Hybrid Life + LTC plan. At age 55 a female will pay $5,359/year for a 10-pay Hybrid Life + LTC plan and at age 65 will pay $7,789/year for a 10-pay Hybrid Life + LTC plan.²

Long-Term Care Insurance is an essential component of any financial plan. The ideal time to buy Long-Term Care Insurance depends upon many components including age, health status, and finances. The key is to plan ahead and incorporate a Long-Term Care plan into your overall financial strategy.

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¹ Rates are for illustrative purposes only. Assumptions using Mutual of Omaha Secure Solutions product, Illinois, Select rate class, 90 Calendar Day Elimination         Period. Additional discounts may be available for Preferred health. For Advisor Use Only

² Rates are for illustration purposes only. Assumptions use Nationwide Care Matters II product, Illinois rates, non-tobacco. Four year plan design with 
   3% inflation protection. Includes partner discount. Guaranteed premiums paid to age 100. Death benefit, cash value, and LTCI benefit are all 
   guaranteed. For Advisor Use Only.