I am in my twenties. Would it be advisable for me to go for Long Term Health Insurance Coverage?
Total Comments: 12
Posted: Wed Dec 30, 2009 11:29 am Post Subject:
It's probably not a good idea. There are other more pressing needs.
Posted: Thu Dec 31, 2009 01:07 am Post Subject:
Unless you have an unusually large amount of money at your disposal I'd advise against it. Disability insurance on the other hand, would be a very wise purchase.
Posted: Sat Jan 02, 2010 06:10 am Post Subject:
The market that insurers target for LTCI are middle income persons in the age 45-65 demographic. You can get it as early as age 18, but the premium would be almost the same as it is for someone age 35 or 40.
However, if money was no object, a person age 20 would do nicely over time with a 5% compound annual benefit increase. Starting out with a $100/day benefit, you'd have more than $850/day after paying premiums for 45 years. Assuming your premium was $1,000/year with no rate increases over time, your $45,000 total premium would be returned after less than 53 days of maximum benefit payments if you needed LTC at age 65 -- not a bad ROI.
So there are arguments pro and con to buying LTCI in one's 20s. For most persons in that age group, it's just not a priority compared to the weekend parties, fast cars, and $65 pairs of holey jeans from Abercrombie & Fitch.
Posted: Mon Jan 04, 2010 05:54 am Post Subject:
According to this article, I found on
www dot long-term-care-insurance-planners dot com
It seems like it is a good idea to buy it at younger age as premium is less. You can read more about it on its website.
Posted: Mon Jan 04, 2010 05:55 am Post Subject:
According to this article, I found on
www dot long-term-care-insurance-planners dot com
It seems like it is a good idea to buy it at younger age as premium is less. You can read more about it on its website.
Posted: Wed Jan 06, 2010 06:06 pm Post Subject:
You are younger than the average LTC client, but if you can afford it and would like something in place, then it might be reasonable idea.
Typically, most consumers are not considering LTC until their 50's or so.
Posted: Fri Jan 08, 2010 12:57 pm Post Subject:
One thing I did not think to write a few days ago is that there are a few companies now offering "20-pay" LTCI policies. Meaning you pay a higher premium per year, but after 20 years, your LTCI policy is fully paid up for life.
If you have the money to cover that expense and make the commitment to yourself to follow through, it is an excellent option. But it's very costly. But, once paid up, no worries about premium increases . . . only: will my insurance company be around to pay the claims?
Posted: Fri Jan 08, 2010 01:09 pm Post Subject:
Some have 10 pay options also.
Posted: Fri Jan 08, 2010 01:13 pm Post Subject:
That's true, too -- even single pay. I was going to edit my post to say that these options may not have been approved in the OP's state, and also that premiums could increase during the premium-paying period, just not after the policy is paid up.
Posted: Fri Jan 08, 2010 05:06 pm Post Subject:
Max, I don't know of any company that has a tax qualified single pay policy. Can you let me know of one? This can be a good option. Thanks.
Posted: Wed Dec 30, 2009 11:29 am Post Subject:
It's probably not a good idea. There are other more pressing needs.
Posted: Thu Dec 31, 2009 01:07 am Post Subject:
Unless you have an unusually large amount of money at your disposal I'd advise against it. Disability insurance on the other hand, would be a very wise purchase.
Posted: Sat Jan 02, 2010 06:10 am Post Subject:
The market that insurers target for LTCI are middle income persons in the age 45-65 demographic. You can get it as early as age 18, but the premium would be almost the same as it is for someone age 35 or 40.
However, if money was no object, a person age 20 would do nicely over time with a 5% compound annual benefit increase. Starting out with a $100/day benefit, you'd have more than $850/day after paying premiums for 45 years. Assuming your premium was $1,000/year with no rate increases over time, your $45,000 total premium would be returned after less than 53 days of maximum benefit payments if you needed LTC at age 65 -- not a bad ROI.
So there are arguments pro and con to buying LTCI in one's 20s. For most persons in that age group, it's just not a priority compared to the weekend parties, fast cars, and $65 pairs of holey jeans from Abercrombie & Fitch.
Posted: Mon Jan 04, 2010 05:54 am Post Subject:
According to this article, I found on
www dot long-term-care-insurance-planners dot com
It seems like it is a good idea to buy it at younger age as premium is less. You can read more about it on its website.
Posted: Mon Jan 04, 2010 05:55 am Post Subject:
According to this article, I found on
www dot long-term-care-insurance-planners dot com
It seems like it is a good idea to buy it at younger age as premium is less. You can read more about it on its website.
Posted: Wed Jan 06, 2010 06:06 pm Post Subject:
You are younger than the average LTC client, but if you can afford it and would like something in place, then it might be reasonable idea.
Typically, most consumers are not considering LTC until their 50's or so.
Posted: Fri Jan 08, 2010 12:57 pm Post Subject:
One thing I did not think to write a few days ago is that there are a few companies now offering "20-pay" LTCI policies. Meaning you pay a higher premium per year, but after 20 years, your LTCI policy is fully paid up for life.
If you have the money to cover that expense and make the commitment to yourself to follow through, it is an excellent option. But it's very costly. But, once paid up, no worries about premium increases . . . only: will my insurance company be around to pay the claims?
Posted: Fri Jan 08, 2010 01:09 pm Post Subject:
Some have 10 pay options also.
Posted: Fri Jan 08, 2010 01:13 pm Post Subject:
That's true, too -- even single pay. I was going to edit my post to say that these options may not have been approved in the OP's state, and also that premiums could increase during the premium-paying period, just not after the policy is paid up.
Posted: Fri Jan 08, 2010 05:06 pm Post Subject:
Max, I don't know of any company that has a tax qualified single pay policy. Can you let me know of one? This can be a good option. Thanks.
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