Why you should apply for long-term care insurance before your 80s

Have you considered purchasing long-term care insurance? This type of insurance can help pay for the added cost of long-term care that most older Americans will face at some point. 

Long-term care insurance is commonly thought of as a way to cover the cost of nursing homes and assisted living communities, but the right policy can help you age at home, too with coverage for in-home health aides. It may even help you pay informal caregivers like your family members or cover the cost of accessibility-related home renovations. 

But, if you've thought about applying for coverage, and decided to wait, you may be making a mistake. That's especially true if you wait too long. In fact, waiting to apply for long-term care insurance until your 80s can come with significant consequences. 

Don't wait until it's too late. Apply for long-term care insurance today. 

Why you should apply for long-term care insurance before your 80s

Here are three reasons why you should apply for long-term care insurance before you turn 80: 

Prices will rise

The premiums you pay for long-term care insurance typically reflect the risk your insurance company accepts when it approves your policy. Higher risk to the insurer is usually met with a higher cost to the consumer - and the longer you wait to apply for long-term care insurance, the greater that risk and resulting cost will be. 

So, if you wait until you're in your 80s to apply for coverage, your premiums may become cost prohibitive. While you may be able to find long-term care insurance in your 80s, "it's likely going to cost you a lot more than you would want to pay," explains Patrick Simasko, elder law attorney and financial advisor at the elder law and estate planning law firm, Simasko Law.

Apply for long-term care insurance now to find out how affordable your premiums can be. 

Coverage options may be more limited

"If you consider that greater than 50% of those over age 65 will need care, that percentage will be much greater by the age of 80," explains Bill Comfort, instructor and training director at Certification for Long-Term Care, a training company that certifies long-term care insurance agents. 

As such, most traditional long-term care insurance policies are only available to applicants who are 79 or younger, according to the American Association for Long-Term Care Insurance. And, if you wait until you're in your 80s to apply, you may be limited to linked-benefit long-term care insurance. 

Linked benefit policies are typically life insurance policies with a long-term care insurance rider. These policies may be more limited in the types of coverage they provide. For example, you may be hard pressed to find a linked-benefit policy with a cash benefit that allows you to pay informal caregivers (like friends and family) or make accessibility-related home renovations. 

You may not even qualify

"Obtaining long-term care insurance in your 80s is like asking if you can get homeowners insurance when your house is already on fire," says Simasko. 

According to the American Association for Long-Term Care Insurance, most traditional long-term care insurance policies are only available to applicants who are 79 years old and younger. And, while you may qualify for a linked-benefit policy, insurers usually stop offering coverage altogether when applicants are over 85. 

But, it's worth noting that if you're under 85 years old, you won't automatically qualify for coverage. You'll usually need to pass an underwriting process that considers factors like your age, health status, height, weight and gender before you can access coverage. And, since health concerns generally arise with age, it's best to apply for coverage as soon as possible. 

The bottom line

Long-term care insurance can help you plan for increasing healthcare costs as you age. But, it's important to apply for a policy before you're in your 80s. If you wait to apply, this type of insurance can become limited and cost prohibitive. If you wait too long, you may not qualify for coverage at all. Chat with a long-term care insurance expert now to learn more about your options.