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LTCI Cost of Waiting

What Is the Potential Cost of Waiting to Purchase a Long-Term-Care Insurance Policy?

There is a time-honored phrase related to long-term-care insurance and it goes like this: "Your money pays for long-term-care insurance, but your health buys it."

As one ages, the risk of not being able to qualify for long-term-care insurance may increase due to deteriorating health.

In addition to the risks of health problems as we age, the dollar cost of long-term-care insurance rises dramatically because the insurer has less time to accumulate sufficient reserves to cover its part of the risk.

A complete statement of coverage, including exclusions, exceptions, and limitations, is found only in the long-term-care insurance policy. It should be noted that carriers have the discretion to raise their rates and remove their products from the marketplace.

Long-term-care premiums are based on your age at the time of application. This calculator assumes that premiums are 8 percent higher each year that you delay purchase. Individual policies may vary.

Skip Table Information
Your Results
Description Amount
Current age: 0
Annual premium for a long-term-care policy: $0
Age you anticipate buying long-term-care insurance: 0
Age you anticipate requiring long-term-care benefits: 0
In this case, your premium at the higher age would be: $0
The total cost difference now through the year when you expect to need benefits as a result of delaying the decision to acquire long-term-care coverage: $0

Based on the information you provided, this chart illustrates the estimated annual costs of a long-term-care insurance policy now vs. waiting. Note that in many cases, your total cost for coverage may be lower if you purchase sooner at a lower premium than if you wait and pay a higher premium, despite the fact that you would potentially pay premiums for fewer years.

Cost of Waiting to Purchase Long-Term-Care Insurance

This hypothetical example is only an estimate and assumes that premium levels remain stable over time. This example does not represent any specific insurance policy or product. Actual results will vary.

[[Member Agent]] is an agent licensed to sell insurance through New York Life Insurance Company and may be licensed with various other independent insurance companies in the states of [[agent states in which licensed]]. No insurance business may be conducted outside of these states referenced.

[[Member Agent]] is a Financial Advisor offering investment advisory services through Eagle Strategies, LLC, A Registered Investment Adviser, in the states of [[agent states in which licensed]]. As such, these services are strictly intended for individuals residing in the states referenced.

[[Member Agent]] is a Registered Representative of and offers securities products and services through NYLIFE Securities LLC, Member FINRA/SIPC, a licensed insurance agency. In this regard, this communication is strictly intended for individuals residing in the states of [[agent states in which licensed]]. No offers may be made or accepted from any resident outside the specific states referenced.

[[Member Agent]] is a Member Agent of The Nautilus Group®, a service of New York Life Insurance Company.

[[DBA Name if applicable. Delete this section if no DBA]] is not owned or operated by NYLIFE Securities LLC or its affiliates.

Neither [[DBA Name and it's employees OR Member Agent]] nor The Nautilus Group®, Eagle Strategies LLC or its subsidiaries and affiliates provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional regarding your particular situation.

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