Do Long-Term Care Premiums Increase with Age?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Do Long-Term Care Premiums Increase with Age?

Yes, traditional long-term care insurance premiums do increase with age.

Reasons for Premium Increase with Age

  1. Higher Risk: Older individuals are at a higher risk of needing long-term care.
  2. Shorter Premium Payment Period: Insurers have less time to collect premiums before potential claims.

Alternatives: Hybrid Policies and Long-Term Care Annuities

Benefits of Alternatives

  • Fixed Premiums: Premiums do not increase over time.
  • Flexibility: Offers additional benefits like life insurance or annuity payouts.
  • Financial Planning: Easier to budget and plan for fixed costs.

Comparison of Traditional vs. Hybrid Long-Term Care Insurance

FeatureTraditional Long-Term Care InsuranceHybrid Long-Term Care Insurance
PremiumsIncrease with ageFixed, do not increase
CoverageOnly long-term careLong-term care + Life insurance
PaymentRecurring paymentsLump-sum or limited payments

Conclusion

Traditional long-term care insurance premiums increase with age. To avoid escalating costs, consider hybrid long-term care insurance policies and long-term care annuities, which offer fixed premiums and additional benefits. These options provide more predictability and financial planning advantages.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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