Wait too long to apply for long-term care insurance and you significantly increase the risk you'll be declined coverage warns the American Association for Long-Term Care Insurance (AALTCI).
"Individuals who want long-term care insurance protection must health qualify and our health generally gets worse as we get older," explains Jesse Slome, AALTCI's director. The Association has released the findings of it's study of decline rates for those applying for a traditional long-term care insurance policy.
According to the Association, some 51 percent of those who submitted an application and were age 75 or older were declined for the coverage. "This is something you clearly have to do well before turning 75," Slome advises. "Our advice is to look into this coverage between the ages of 55 and 65. Once people get onto Medicare, they often take advantage of all the health screens that Medicare pays for and while those are great, they can uncover health issues that can prevent you from qualifying for long-term care insurance."
Only 16 percent of applicants whop were age 49 or younger were declined by insurers sharing data. The percentage increased with each age band the Association reported.
Nearly a quarter (24 percent) of individuals applying between ages 60 and 64 were declined for coverage. The percentage increased to 32.5 percent for ages 65 to 69.
Decline rates increased slightly from the last time the Association compiled data in 2014. "There little attention paid to educating consumers about the age to start investigating long-term care insurance as an option to cover potential risk of needing care at home or in a skilled nursing facility," Slome admonished.
"You can't start saving for retirement at age 60 and hope to have enough money put aside," Slome noted. "With long-term care insurance, it is your health that's most important and clearly, the younger you are, the better your health is likely to be. Waiting could be a very costly mistake."
The Association makes available the latest data on long-term care insurance on the Association's website. Go to https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2019.php to see studies from 2019.
The American Association for Long-Term Care Insurance, the American Association for Medicare Supplement Insurance and the American Association for Critical Illness Insurance all advocate for the importance of planning and support insurance professionals nationwide. Jesse Slome, founder and executive director of the organizations, is a leading consumer advocate and author of numerous consumer and professional guides focused on retirement and insurance planning that have been published by governmental agencies and private organizations.