Q. I sell LTCI policies to prospects of all ages. But what is the best age to purchase this coverage?
A. One of the secrets in this industry is a factor called "the high cost of waiting." It means that the younger you are when you purchase the policy, the less you will pay over the lifetime of the policy.
So when is the best time to apply for this coverage? If you have a lifestyle or assets to protect, you should try to qualify for this coverage now. If you wait until you begin to get sick, you either won't be able to get a policy, you will be limited to getting less coverage or will have to pay a higher premium. The healthier you are, the less you will pay because you will probably be able to qualify for a preferred rating.
Here's a good guideline to use. It may vary by specific policies, but overall if you are 45 years of age now, and you wait until you are 65 to buy, it will be three times more expensive. There are two reasons for that. First, because the premium is based on your age at time of application, since you are older, it will be higher. And second, you will need to take a higher daily benefit to keep pace with inflation.
In my client presentation binder, I have a page summarizing this concept. It has two columns–one is titled NOW and the other column is titled WAITING. Here's the copy I use:
