How Much?

There are two financial factors to consider when purchasing long-term-care insurance: how much coverage you need, and how much you can afford. Most people have fixed incomes in retirement, and usually can't keep up with inflation. Consequently, it's important to buy insurance that has premiums you can comfortably afford.

In most cases, the earlier you buy a policy, the better. The following table will show you how much a long-term-care policy would cost, assuming the premiums did not increase, if you entered a nursing home at age 81.

Policy purchased at age:	Yearly premium	Years to pay until age 81	Total premiums paid by age 81
45	$ 720	36	$ 25,920
50	$ 935	31	$ 28,985
55	$1,190	26	$ 30,940
60	$1,665	21	$ 34,965
65	$2,350	16	$37,600
70	$3,660	11	$40,260
75	$6,950	6	$41,700

As you can see, the older you are when you first purchase a policy, the more you will pay for having it. It is important to remember also, that you must be healthy at the time of purchase. By waiting until you are older, you not only risk paying more for the policy, but also risk being "denied" due to failing health.

For more information on this, review our services or request our free brochure "Long Term Care Insurance" or order our book "Long Term Care -- Alternatives & Solutions."