I am often asked about which age is the best to begin seriously thinking about applying for long-term care insurance. Here are the resuts of a recent study by the American Association for Long-Term Care Insurance, a national industry trade organization that tracks data on this subject from many large insurers:

“Individuals mistakenly think long-term care planning is something that can wait until after retirement, but because of health changes that tend to occur in our 50s and early 60s, the facts shows otherwise,” explains Jesse Slome, the Association’s executive director. “Between one-fifth (20%) and one-third (33%) of individuals who submitted an application for long-term care insurance between ages 60 and 69 were declined coverage because of an existing health condition according to the biennial study.” The industry average for declined applicants between ages 60-to-69 was 22.9 percent. For ages 50-to- 59 it was 13.9 percent.

While insurers can decline individuals who apply for coverage with existing health conditions, most reward those who apply while in relatively good health. “Just over half (51.5%) of individuals who applied and were accepted for coverage last year between ages 50 and 59 qualified for “preferred health” discounts,” Slome acknowledges. These discounts can reduce the cost of long-term care insurance by 10 to 20 percent each year. “The savings can amount to hundreds of dollars a year for a couple,” Slome notes, “and they won’t be taken away in the future should your health change.”

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