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While inflation And interest rate both have declined in recent months, but the economic burden felt by years of high borrowing costs and more expensive daily living will take some time to ease. Unfortunately, for many older adults and those relying on limited budgets, much of the damage has already occurred. For this demographic, it might therefore be worth exploring ways to reduce future additional costs.
A great way to do this is to purchase a sturdy long-term care insurance plan. This unique type of insurance can help you blanket the costs of home guards (including family members and friends), retirement homes, serviced residences and more. However, as with all types of insurance, delaying an application could be a costly decision in more ways than one.
As a new year approaches, it is therefore useful to understand the reasons which justify applying for long-term care insurance now, before 2025. Below, we will detail three of them.
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3 reasons to take out long-term care insurance before 2025
Here are three big reasons why those considering long-term care insurance might want to apply for it before January 2025:
Reduced premiums
Each calendar year that passes places applicants in a different risk group. And riskier applicants cost more to insure, and those expenses are often passed on to applicants in the form of higher premiums. So if you know you need the financial support of a long-term care insurance plan, strongly consider signing up now, even before 2025. Waiting until the new year could complicate your application and cause your premiums to potential are higher than if you had been proactive. And applied at a younger age.
This is not an exact science and the premium you are charged in the first quarter of 2025 may be the same as what you are currently offered, depending on the provider. But it’s also possible, even likely, that you’ll pay more for a plan in 2025 than if you applied for one now. So don’t take this risk.
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More comprehensive care
A lower price isn’t the only compelling reason to buy long-term care insurance (or any other type of insurance) sooner rather than later. If you are looking for more comprehensive care at a more affordable price, it makes sense to apply earlierincluding for those considering long-term care. If you delay an application until you need the care or until much later in life, you risk being denied outright. For seniors and seniors who know they don’t have the financing to cover these unavoidable costs, it’s a good idea to start researching potential policies and providers now.
A head start on the waiting period
Many insurance policies have waiting periods, the time between a policy being approved and when it can be used. With waiting periods for long-term care insurance ranging roughly from 0 to around 120 days, it is up to savers to get started as soon as possible. It will be easier and significantly less expensive to meet this waiting period when you don’t need a live-in sitter or a nursing home, for example, rather than when you do. Carefully weigh the costs of waiting.
The essentials
There’s a compelling case to be made for those considering long-term care insurance to act now, before the new year rolls around. By being proactive, these potential applicants can potentially secure a lower premium, more coverage choices and begin to eliminate the days of their waiting period. That said, each individual’s financial situation and preferences differ, and in some cases, delaying action may be the right choice. That’s why it’s worth speaking to a financial advisor and long-term care insurance representative who can give you a more complete picture of this unique insurance protection.
