It’s Long-Term Care Awareness Month, and it might also be time for you to purchase your insurance policy. Insurance can be costly and confusing, but it’s also necessary to avoid wiping out your retirement savings. Knowing what you need to buy and the best time to purchase is crucial.
Consider this: The national median daily cost for a private bed in a nursing home in 2021 is $299 a day, or $109,026 a year. A yearlong stay in your own room at an assisted living facility runs $53,148.
So, what’s the right age to buy a long-term care insurance (LTCi) policy that keeps premiums competitive while saving you money on total premiums paid over the life of the policy? Assuming you’re still in good health and eligible for coverage, the optimal age to shop for a policy is between 60 and 65. It’s suggested that couples start looking about five years earlier. You risk being at greater risk of rejection for coverage because of poor health by waiting extra years.
Not everyone needs an LTCi policy, so it’s essential to ask some questions:
- Health history. Do family members have hereditary conditions?
- Long-term care. Have other family members needed assisted living or nursing care?
- Can you afford to pay out of pocket, or are you willing to liquidate to pay for long-term care?
- Risk tolerance. Are you risk-averse or uncomfortable with unknown future costs?
As your dedicated financial professional, we believe you should be having conversations about your long-term care intentions once you reach age 50. If you’re ready to start the conversation, reach out to us at (540) 720-5656.
Adapted from AARP1
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.