Long-Term Care Insurance: The Effect Your Age Will Have on Your Premium

IMPORTANCE RATING: 3

The younger you are when you purchase long-term care insurance, the lower your premium will be for the life of the policy.

In addition, you lock-in your issue-age premium rate for the rest of your life. This means that a 50 year-old who purchases coverage today will still be paying the 50 year-old rate, even when they are 75 years of age.

Important Clarification: Although you lock-in your current age rate, premium rates CAN increase after the policy is issued. If an insurance company has underpriced their premiums or issued coverage to individuals with health problems, you will likely experience rate increases on your policy. But the rate increases will be on the entire class of policyholders. This means that everyone in your state who purchased a policy with your policy form from the same company will also receive a rate increase.

RECOMMENDATION: Although there are advantages to purchasing at a younger age, this does not mean that you should automatically purchase LTC insurance simply because you are young and can lock-in a low premium rate. Review the section on Suitability before making a decision. But if you determine that LTC insurance is suitable for you, purchasing coverage at the earliest possible age is a wise decision.