Is long-term care insurance worth it for a 65 year-old?

Most Americans who are 65 years old or older will need long-term care in their lifetimes. That's the type of care you may receive in a nursing home or assisted living community, or even at home with the assistance of a home health aide. 

But those services are costly. Home health aides and assisted living communities can easily cost tens of thousands of dollars per year while nursing home services can cost six figures annually. So, what do you do if you're 65 years-old and don't have a plan to cover these expenses?

Purchasing long-term care insurance may be worth consideration. This type of insurance helps cover the cost of long-term care services as you age. But, long-term care insurance premiums usually get more expensive over time. So, is this type of insurance even worth it at 65? That's what we will break down below.

Compare your long-term care insurance options now. 

Is long-term care insurance worth it for a 65 year-old?

Even if you're 65 years old, long-term care insurance may be worth purchasing. At 65 years old, a $4,000 monthly benefit inclusive of a 3% inflation rider and a 3-year benefit period will typically cost men about $2,749 annually ($229.08 per month) and women about $4,599 per year ($383.25 per month). Here's why those premiums are worth paying: 

It protects your ability to choose your care

Long-term care insurance "ensures your wishes are honored, allowing independence and dignity of choice in how and where you receive care," explains Virginia Barausky, National Director of Sales for The Pinnacle Group, a firm that helps consumers and financial advisors with insurance and long-term care needs planning. 

There are several decisions to make in terms of your long-term care. Would you rather age at home with a mix of formal and informal caregivers or would you rather rely on the services available at an assisted living community or nursing home? If you choose an assisted living community or nursing home, are you OK with a semi-private room or would you rather a private room? 

All of these factors can have an impact on the cost of your care. However, if you plan for and purchase insurance to cover that cost you won't have to cut corners in your plan. This may not be the case if you pay for your care out of pocket.

Purchase a long-term care insurance policy now. 

You could pay significantly higher premiums if you wait (if you even qualify)

Long-term care insurance companies typically price premiums based on the risk the applicant poses. And, when you're older, that risk is higher - which could lead to higher premiums.

"These policies are less expensive the younger you are - there is no benefit to waiting," says Barausky. When you wait too long to purchase a policy, "you risk not being able to qualify if your health is less than they will accept, and paying a lot more."

So, it's best to apply now, when you're 65, before these issues arise. 

It's not a use it or lose it proposition anymore

In the past, long-term care insurance was often a use it or lose it proposition. Frequently, you paid for coverage, and if you died before you needed care, the money you paid was lost. But that's not necessarily how long-term care insurance works these days. 

"The good news is that today, modern long-term care policies are not your grandmother's old policies," says Barausky. "There are more options for consumers and they can offer as much and more than just a stand alone long-term care policy can."

These options could add a death benefit to your coverage if you don't use long-term care services and give you more coverage options to choose from overall.

"Options range from hybrid life and long-term care policies to annuities with a long-term care rider that offer coverage for all levels of service and home health care," says Barausky. Today's policies can also offer "guaranteed rates, income tax free death benefits, and flexibility in benefit duration and options, as well as flexible payment options."

The bottom line

Long-term care insurance is worth considering, even if you're 65 years-old. In fact, if you're 65, it's important that you purchase a policy as soon as possible. After all, long-term care insurance protects your ability to choose the care you receive and where you receive it. Moreover, today's long-term care policies offer more coverage options than the policies of the past. But, the cost of that insurance may rise and its availability may wane if you wait too long. So, chat with a long-term care insurance agent today to get the coverage you need before it's too late.