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Friday, October 3, 2014

When should I purchase LTCi?

There are many things that you can put on hold until you reach retirement; however, buying long-term care insurance is not one of them.
Even if you are physically fit during your 50s, you cannot avoid the fact that all of us will need some form of care at a certain period of our life, mostly during late adulthood.
Here are reasons why you should buy LTCi sooner:
1. Enrolling in your 50s has its benefits.
When you enroll for long-term care insurance during your 50s, the premiums will be lower and the payouts are going to be higher. Purchasing a policy in your 60s or 70s will be significantly more expensive than in your 50s.
2. Other payment options have tax implications.
Going for charitable remainder trusts can help you get placed in a lower tax bracket during post-retirement and lower your tax liability. It also functions like annuities and the payouts you receive can be used to fund for LTCi premiums.
3. You are still in good physical condition.
Part of getting eligibility for an LTCi policy is to be in good physical health, free of illness or other medical conditions. Do not wait to get diagnosed of an illness before you file for an application. Some illnesses only begin to show symptoms by the age of 60.
4. Insurance policies are increasing flexibility.
Most insurance policies today are composed of more than one benefit, which most consumers should start taking advantage of. Such flexibility are seen from hybrid policies which combine different benefits such as life, health, and long-term care insurance.
5. “Self-insuring” is becoming difficult.
If you are in your 40s or 50s, you still have around 30 years before you begin requiring care. By that time, the rates of care would have increased at least four times compared to today.
The thought of having to rely on other people to take care of ourselves on a daily basis isn’t a cheerful topic to talk about, but it is an unavoidable truth which all of us need to be ready for.
We cannot delay buying LTCi too long. Once we reach our 70s or 80s, it’s almost impossible to get eligibility and it will be too late.