When Should You Buy Long-Term Care Insurance? — Insurance Specialist Insights

By Kenneth Hausman – Insurance Specialist, Hotaling Insurance Services
Updated July 10 2025

Short answer: Most people lock in coverage between ages 52 and 58—before premiums rise 6–8 percent each year and health issues cause declines.

What Is Long-Term Care Insurance?

Long-term care insurance (LTCI) reimburses expenses for extended help with daily activities—services Medicare rarely covers—delivered at home, in assisted-living facilities, or in nursing homes.

Why Does Timing Matter for LTC Insurance?

Premiums rise roughly 6–8 percent for every year you wait after age 50, and developing diabetes, heart issues, or cognitive concerns in your 60s can push you into higher rate classes or lead to outright declines.

What Is the Best Age to Buy LTC Insurance?

2025 Annual Premiums – $165 k initial benefit, Select Health Class

Waiting from 55 to 65 nearly doubles premiums for women and couples—one reason advisors highlight the 52–58 window.

How Do Health & Underwriting Affect When You Should Apply?

Carriers evaluate BMI, blood pressure, cholesterol, lifestyle, and cognitive screens. Decline rates jump from 17 percent at age 55 to 38 percent at 70. Applying earlier improves approval odds and may qualify you for preferred-health discounts.

How Much Does LTC Insurance Cost in 2025?

The National Council on Aging pegs average annual premiums at $1,200 for a healthy 60-year-old man and $1,900 for a woman; couples pay about $2,600. Hybrid policies usually cost two to three times more but return a death benefit if care is never needed.

Should You Buy a Hybrid LTC/Life Policy Earlier?

Hybrid contracts from carriers like AIG and Nationwide lock in premiums, build cash value, and offer LTC benefits tax-free. Buying in your late 40s or early 50s gives cash value decades to grow and can complement estate-planning trusts.

Are LTC Premiums Tax-Deductible by Age?

The IRS treats qualified LTC premiums as medical expenses. For 2024 you can deduct up to $1,760 per person if you’re ages 51–60; limits rise with age and are updated each January.

What Happens If You Wait Until Retirement?

Besides higher premiums and decline rates, you’ll face slimmer inflation riders and fewer Partnership-qualified policies. Delaying may also jeopardize Medicaid asset-protection benefits tied to state Partnership plans.

Expert Tips from Kenneth Hausman

• Pair with Disability Review: Convert a high-limit disability policy to LTC at retirement to skip new underwriting.

• Use Executive Carve-Outs: Business owners can deduct premiums for key employees—boosting retention.

• Leverage HSAs Early: Fund a Health Savings Account in your 40s; qualified LTC premiums are tax-free reimbursements after 65.

Expert Insight Enhancements Sources

• Self-Funding vs. Insurance Break-Even
  Funding three years of home-care and nursing-home services out of pocket can easily top $325,000 at today’s national median rates. By contrast, purchasing a $165 k benefit at age 55 typically costs under $45,000 in lifetime premiums. The break-even point appears the moment care begins—evidence that insurance preserves capital.

• Care-Giver Strain Snapshot
  When parents lack coverage, adult children shoulder an average 20 unpaid hours of care each week, often sacrificing promotions or exiting the workforce entirely. Studies show 43 % of informal caregivers deplete personal savings, and 28 % report depression. A policy transfers not just dollars but emotional load.

• Partnership Policies & Medicaid Asset Shield
  Buying a Partnership-qualified contract before age 60 unlocks dollar-for-dollar asset protection if you later need Medicaid. Own a $165 k policy, keep $165 k of home equity from spend-down rules. Purchase too late and the look-back period may disqualify the contract, exposing the house to lien recovery.

• Underwriting Myths Busted
  Clients fear that routine conditions doom an application—yet controlled hypertension and statin-managed cholesterol usually pass at standard rates. True red flags are recent opioid prescriptions, oxygen use for COPD, or insulin-dependent diabetes. Clear guidance up front prevents costly declines and safeguards Medical Information Bureau records.

• Tax Playbook Beyond §213(d)
  Health Savings Accounts reimburse qualified long-term-care premiums tax-free after age 65. C-corporations may deduct 100 % of employee premiums under §162, and owners avoid constructive-dividend treatment. Even S-corp shareholders can shift premiums pre-AGI by routing through the company and declaring on Schedule 1—protection plus preferential tax treatment.

• Gender & Marital Premium Gaps
  Women pay 40-70 % more than men because they live longer and claim benefits longer. Couples can neutralize that disparity with a shared-care rider that pools unused days; actuarially, it trims 10-15 % off combined premiums and guarantees remaining benefits if only one spouse ever needs care.

• Real-Life Case Study
  Mark and Lisa, both 58, worried about Lisa’s family Alzheimer’s history. Their quote range: $2,050 each for individual coverage or $3,450 combined with shared care and 3 % compound inflation. They chose the joint plan, locking premium auto-drafts into Mark’s S-corp and securing $450,000 total tax-free protection.

• Return-of-Premium & Survivorship Riders
  A return-of-premium rider refunds paid premiums—minus claims—if the insured dies early, typically adding 20 % to cost. Survivorship waives future premiums after one spouse dies if no claims occurred. Good for legacy-minded buyers but unnecessary when liquidity is tight; both riders can be added later at policy anniversary.

• Carrier Financial Strength Check
  Long-term-care promises run 30-plus years, so stick with insurers rated A or higher by AM Best and above 80 Comdex. Review statutory reserve ratios and recent rate-increase filings; a strong surplus plus conservative pricing philosophy lowers future premium-hike risk and ensures claims are honored promptly.

• Inflation-Rider Decision Tree
  Under 60 with decades to retirement? Choose 3 % or 5 % compound growth to double benefits every 14-24 years. Ages 60-70 and budget-sensitive? A 3 % simple-interest or CPI-indexed rider may suffice. Over 70 or funding hybrids? Consider no rider, placing savings into a side fund for incremental costs.

Frequently Asked Questions: When Should You Buy Long-Term Care Insurance?

What is the best age to buy long-term care insurance?
For most healthy Americans, age 55 balances affordability with favorable underwriting.

How early should you get long-term care insurance?
Applying in your late 40s locks in the lowest premiums, but you’ll pay longer before potential claims.

Is it worth it to buy long-term care insurance?
If you have $200 k–$3 M in assets, LTCI typically costs less than self-funding extended care.

When should you get long-term life/LTC hybrid insurance?
Hybrids work best when purchased before 55, giving cash value decades to grow.

What disqualifies you from long-term care insurance?
Severe mobility issues, insulin-dependent diabetes, cognitive impairment, and certain cancers usually trigger declines.

Next Steps

Locking in coverage during your early- to mid-50s can preserve retirement assets and offer peace of mind. Kenneth Hausman can compare quotes from our A+ carriers.

Click Here to Talk to Kenneth Hausman Today

Kenneth Hausman has 30-plus years of experience in life and long-term care insurance. Licensed since 1990 (Life & Health, Series 6 & 63), he tailors risk-management strategies for business owners and high-net-worth families. Ken previously served as Director of Sales at Zebra Technologies, adding deep strategic-planning skills to his insurance expertise. An active member of the South Palm Beach Federation, he also supports United Cerebral Palsy on a national level—demonstrating the community focus he brings to every client engagement.