Why you should purchase long-term care insurance at 65 years-old, according to experts

When you're 65 years-old, you have around a 70% chance of needing long-term care later in life. And since that care can cost tens or even hundreds of thousands of dollars per year, it's important to plan for the expense. 

Purchasing a long-term care insurance policy is one way to plan for the cost of your future care. This insurance can help cover the costs for nursing homes, assisted living facilities, in-home caretakers and other needs you may have as you age. But, does it still make sense to buy long-term care insurance at 65? We spoke to multiple experts and found that even at 65 years-old, it's still worth purchasing a long-term care insurance policy. 

Compare your long-term care insurance options now. 

Why you should purchase long-term care insurance at 65 years-old, according to experts

Here are six reasons experts say you should purchase long-term care insurance at 65 years-old:

The cost of care is high

Long-term care can be expensive. In fact, "the cost of care can be up to $10,000 a month for care in a nursing home, some more some less depending on the city and state the client receives care in," explains Corey Rieck MBA, CLTC, president and founder of The Long-Term Care Planning Group, a firm that helps consumers plan for their long-term care needs. 

In fact, when you compare the cost of long-term care insurance premiums to the cost of care itself, the difference can be staggering, especially if you need high-cost nursing home care. "Ultimately, one year's annual premium will be less than one month's care so there can be excellent financial leverage," says Rieck. 

Purchase long-term care insurance now to cover the high cost of your future care. 

Medicare is not designed to cover long-term care

Some people expect Medicare to cover their long-term care expenses. But, "long-term care insurance is important to consider at this time as Medicare does not pay for long-term, custodial care," explains Bill Comfort, CLTC, director of training at Certification for Long-term Care, an education company that certifies long-term care insurance agents.

In fact, you'll be hard-pressed to find anything other than long-term care insurance that does cover the cost of your care unless you use most of your personal assets first. "Nothing pays for LTC until the client has spent down to a certain minimum asset and income levels and then they may qualify for that state's Medicaid system according to that state's rules," explains Rieck. 

Long-term care insurance protects your loved ones

Long-term care insurance isn't just for you either. It can protect your loved ones. 

"The true protection that you get from a long-term care plan is to protect the family," explains Keith Bercun, regional account director for OneAmerica, a financial services company focusing on retirement and long-term care planning. 

Many people rely on their family members for their care. But that's not always the best plan. "Everyone associates long-term care insurance with asset protection. What it is truly doing is protecting your children from completely uprooting their lives and becoming caregivers," says Bercun.

Premiums and payment options may be more challenging later

"LTC insurance premiums are based on your age at the time of application, and those premiums increase dramatically for people who start after 65," explains Comfort. But, high prices may not be the only payment-related issue you contend with if you wait to apply. Comfort says, "premium payment options may become limited after age 65 as some companies require more expensive 10-year (or shorter) payment plans starting at age 66."

Long-term care insurance premiums may be tax deductible

"Not everyone turning 65 is retiring either," explains Comfort. "If they are self-employed or perhaps are semi-retired but continuing to do independent consulting work, a portion of qualified LTC insurance premiums may even be deductible as a business expense."

And, you may not have to be self-employed to take advantage of long-term care insurance tax deductions. So, it's important to know the 2023 and 2024 long-term care insurance tax deduction limits by age.  

Long-term care insurance can help you age at home

Long-term care insurance doesn't just pay for nursing homes and assisted living communities. It can help you age at home. "The coverage could provide more options than just nursing home care," explains Steve Azoury, ChFC and owner of the financial planning firm, Azoury Financial. "While buying long-term care insurance at 65 years old may be more expensive, it may be necessary in order to help obtain home health care services as you age."

The bottom line

There are several reasons to buy long-term care insurance at 65. Not only is the cost of care high, there aren't many other options that could cover these needs (and those that do may require you to liquidate your own assets first). Long-term care insurance can also protect your loved ones while still giving you the ability to age at home. And, your premiums may be tax-deductible and could be lower now than the premiums you'll qualify for later. Get in touch with a long-term care insurance expert to learn more about your options now.