How to cut the cost of long-term care insurance in your 70s

If you're shopping for long-term care insurance (a type of insurance that covers the cost of services like nursing homes, assisted living facilities and home health aides) in your 70s, you may need to overcome some challenges. Insurers have to think about the risk associated with offering new policies. And since most people over 65 will need some form of long-term care before they die, that risk to the insurer is higher when you're in your 70s than it is for younger applicants. 

Considering this increased risk, the rejection rate among long-term care insurance applicants is about 50% at 70 years old. And, if you do have access to coverage, it may be costly. But the good news is that there are ways to cut that cost, even if you're purchasing long-term care insurance in your 70s. 

Compare your long-term care insurance options now. 

How to cut the cost of long-term care insurance in your 70s

Are you worried about high long-term care insurance premiums in your 70s? Here are a few ways you may be able to cut your cost. 

Apply now

If the cost of long-term care insurance is a concern, it's important that you apply for coverage as soon as possible. With risk to insurers playing a significant role in premiums, and your risk of needing long-term care growing with age, the premiums you qualify for today could be the lowest long-term care insurance premiums you'll ever have access to again. The longer you wait, the higher your premiums may get. 

Don't wait until coverage becomes too costly. Apply for long-term care insurance now. 

Think of long-term care insurance as a supplement

At first glance, you may think of long-term care insurance as a way to pay for 100% of the cost of your care. But you may not need your policy to cover all of those expenses. If you have retirement income, you may be able to use a portion, if not all, of that income to help reduce costs. And that could reduce the total coverage you need. 

For example, say you have $55,000 per year in retirement income, but you also have $20,000 per year in costs you need that income to cover. That leaves $35,000 per year in retirement income that you can use to fund a portion of your long-term care expenses out of pocket. So, in this example, you'll need $35,000 less coverage per year, which may produce meaningful savings in your monthly premiums. 

Shop around

Keep in mind that insurance companies are their own entities and they're free to charge whatever premiums they see fit for the coverage they provide. So, it's advantageous to compare your options. 

"Shop around and compare quotes," says Justin Stivers, financial advisor and founding attorney at the estate planning law firm, Stivers Law. "Take the time to research multiple insurance providers and obtain quotes from different companies. This can help you find the most competitive rates and coverage options tailored to your needs."

Don't purchase coverage you don't need

As you shop for long-term care insurance, you'll come across several coverage options and customization opportunities. For example, some long-term care insurance policies limit your coverage to formal care. While there may be other policies that make it possible to pay informal caregivers like friends and family members, the additional cost associated with those policies may not be worth the benefit if you don't already plan on leaning on this type of caregiver as you age. 

Also, you should carefully consider the cost of riders before you add them to your policy. For example, you may learn that a return-of-premium rider can pay your beneficiaries the premiums you paid for your insurance if you don't use it before you die. Though this may sound like a compelling option, these riders can make a meaningful difference in your monthly premiums - and foregoing them may be a wise option if you're interested in securing the lowest premiums possible. 

The bottom line

Long-term care insurance can be costly when you're in your 70s. But that doesn't mean you should go without the coverage you need. There are a few things you can do to cut the cost of your long-term care insurance premiums, even after you turn 70 years old. 

First and foremost, apply today. Since long-term care insurance premiums typically rise with age, the price you qualify for today may be the best price you'll ever have access to again. Also, think of long-term care insurance as a supplement to your retirement income when you need care, rather than the sole source of funding your care. And, avoid riders and policy customization opportunities that either don't apply to you or are simply too costly to consider when you need affordable premiums.