When you’re in your 40s, planning for long-term care you may or may not need as an aging adult might not be at the top of your to-do list. But should it be? The cost of long-term care (LTC) is rising every year, now surpassing $110K annually for nursing home care. Long-term care insurance can significantly offset the cost of these healthcare services, but you can’t wait around until you need it.
As a CPA, you’re knowledgeable when it comes to managing finances. Consider LTC planning a smart way to help protect your financial future for yourself and your loved ones. Whether you’re still getting established in your career or approaching retirement, the information here can be a good starting point when it’s time to explore adding LTC insurance to your coverage portfolio.
Why Age Matters More Than You Think
There is no one-size-fits-all number that determines when you should consider purchasing long-term care insurance. The “right” age will be different for every individual, but there is a window that is considered ideal.
Why is this so important?
Age can make the difference between getting approved and getting denied for a long-term care insurance policy. It will also impact the premiums you pay. Your total long-term care insurance costs will also depend on the length of time you’re paying those premiums. All of these factors mean it’s important to consider buying LTC insurance within this window.
The LTC Insurance Sweet Spot
While there isn’t a magic number for buying long-term care insurance, there is a “too soon” and a “too late.” Buying before the window is open or once it’s closed could have a negative impact on your financial future.
The recommended window for purchasing long-term care insurance is age 55-65, though many advise not waiting until you reach retirement age. This is because your age affects your health, and your health affects your likelihood of needing long-term care. Waiting until you’re older may increase an insurer’s risk in providing LTC insurance, which could impact your eligibility or the premiums you pay.
Qualifications for purchasing LTC insurance vary between insurers. Some may cut off eligibility for purchase at 65 years old, while others will insure you at age 70 and beyond. It’s important to keep in mind that your age will also impact the premiums you pay, so purchasing a policy at a younger age likely means lower premiums initially, while purchasing at an older age means higher premiums and a greater risk of being ineligible.
Breaking Down the Numbers: Premium Costs by Age
Wondering how much you stand to gain (or lose) by purchasing long-term care insurance at a particular age?
Sample Long-Term Care Insurance Policy Comparison Across Age Groups
Each insurance company has its own qualifications and pricing based on age and overall health. For illustrative purposes only, the table below features sample annual premiums for a $165,000 initial benefit pool with 3% compound annual growth.
| Purchase Age |
Single Male |
Single Female |
Couple (Combined) |
| Age 55 |
$2,075 |
$3,700 |
$5,025 |
| Age 60 |
$2,585 |
$4,400 |
$5,800 |
| Age 65 |
$3,135 |
$5,265 |
$7,150 |
| % Increase from Age 55 to 65 |
+51% |
+42% |
+42% |
Source: Data from the American Association for Long-Term Care Insurance, 2024, www.aaltci.org
You can see that waiting 10 years increases annual premiums by 42-51%. For a single male, that's an additional $1,060 per year in premiums, or over $10,600 more over a decade. Note that women typically pay more than men for LTC insurance, as seen in the table above, due to a longer life expectancy.
The Cumulative LTC Cost Reality
So, what’s to stop you from purchasing LTC insurance at an even younger age to take advantage of lower premiums? Nothing, really. However, it’s important when planning ahead for long-term care that you factor in the total amount you’ll be paying in premiums over the years. If you purchase a plan at age 40, you’ll likely get lower premiums, but you’ll also be paying those premiums for an additional 15 years or more. Eventually, your cumulative cost could exceed your total benefits, which is something you want to avoid.
The Health Factor: How Insurability Changes with Age
Your age isn’t the only factor that contributes to your LTC insurance eligibility and your premium. The other major factor is your health status at the time you apply. You may not qualify to purchase an LTC policy if you have a pre-existing condition, which may include:
- Parkinson’s disease
- Alzheimer’s disease
- Multiple sclerosis or ALS
- Congestive heart failure
- Kidney failure
- Metastatic cancer
An insurer may want to visit with you, telephonically or in person, to determine whether you have any health issues that could impact your eligibility or your premium. At that time, they will check to see if you currently need assistance performing daily activities. They will also go through your health records and medical history during the underwriting process to assess your risk level.
Even if you don’t have any chronic illnesses, recent surgeries or hospitalizations can also have an impact on your insurance premiums, so it’s important that you plan early.
Can You Be Too Young? The Case for and Against Early Purchase
As mentioned above, there typically isn’t a minimum age to purchase LTC insurance, but that doesn’t necessarily mean you have to buy early. Here’s what you should consider:
Buying in Your 40s: Pros and Cons
Once your 40s roll around, you’ve likely started to think about and plan for your golden years. That means working on retirement savings and building the legacy you want to leave. Here are some pros and cons to consider when deciding whether to purchase a long-term care insurance policy in your 40s:
Pros:
- You will likely be eligible for a lower premium (at least initially).
- If you are currently healthy but have an increased risk for certain medical conditions that may require long-term care, you’ll likely have coverage when that need arises.
Cons:
- You will be paying your premiums for years longer than those who buy a policy in their 50s or 60s.
- You may pay premiums for many years before needing long-term care, so it’s important to carefully compare the potential benefits with the long-term cost of coverage. If your policy doesn’t adjust with inflation, it may be worth a lot less in actual benefits once you need to use them.
When Early Purchase Makes Sense
Purchasing LTC insurance may make sense if, as mentioned above, you know that you are at an increased risk for health conditions that may eventually require you to have long-term care services. For example, if you have a genetic predisposition to a certain illness or disease, or if you have family members who have experienced cognitive decline, it might be wise to buy an LTC insurance policy as soon as you are able.
Why Waiting Until Your Late 60s or 70s Is Risky
The biggest risk you take by waiting until you’re older to purchase long-term care insurance is that the likelihood of you experiencing major health issues or cognitive decline that necessitates long-term care increases dramatically past the age of 65.
If you wait, there are two likely scenarios. Either you will be denied by the insurer or you will be responsible for paying much higher premiums for your coverage.
Age-Specific Scenarios: What CPAs Should Consider at Different Life Stages
Your optimal timing for purchasing LTC insurance depends on where you are in your career and life. Here's what to consider at each decade:
CPAs in Their 40s
If you’re in your 40s, you’re likely focused on building your career, paying down debt, and maximizing retirement savings. You may even be caring for an older relative, a common scenario for many Millennials. While LTC insurance premiums are lower, if you don’t have a family history of chronic illness or significant genetic risk factors, you could instead focus on building your emergency fund and retirement, but keep LTC on your radar.
CPAs in Their 50s (The Sweet Spot)
This decade, especially the second half, represents the ideal time to explore long-term care insurance if you are in good health, have a stable income, and are actively planning for retirement. Premiums are reasonable, and you’re old enough that you won’t be paying for
CPAs in Their 60s
At age 60, consider securing a long-term care insurance policy. At this age, you may have already experienced the loss of a loved one, which has made LTC insurance feel more urgent. Research types of long-term care to better understand what coverage features you may want. Talk to your family members about your long-term goals and wishes, including what type of care environment you’d like to be in (e.g., nursing home, assisted living, adult daycare, or in-home care) if and when you need services.
CPAs in Their 70s and Beyond
Once you reach your 70s, traditional long-term care insurance becomes increasingly difficult to obtain. Your likelihood of having major health concerns increases, which affects your eligibility. You should not rely on Medicare or Medicaid for care in your later years. Medicare doesn’t cover most long-term care services, and Medicaid requires a “spend down” that may severely damage your personal finances. Instead, consider alternative options like short-term care insurance or hybrid policies that combine life insurance with an LTC rider. These may offer more flexible underwriting requirements, though they come with their own set of trade-offs.
Beyond Age: Other Factors That Affect Your Optimal Purchase Timing
While age is a critical factor in making your long-term care plans, it’s not the only consideration when determining when to purchase coverage. Here are other factors to evaluate:
- Financial stability: Can you comfortably afford premiums without compromising your retirement savings or current lifestyle?
- Family history: Do you have relatives who required long-term care? Genetic predispositions may warrant earlier coverage.
- Marital status: Married couples or partners often qualify for premium discounts, making joint policies more cost-effective.
- Current health: Are you in good health now? Waiting until health issues arise could disqualify you entirely.
- Career plans: If you’re planning to retire early or transition to part-time work, secure coverage while you have a stable income.
The Bottom Line: Finding Your Personal Magic Number
There’s no universal “magic age” for purchasing long-term care insurance, but for most CPAs, the answer falls somewhere between 55 and 65. This window offers the best balance of affordable premiums, good health for eligibility, and enough time before you’ll likely need the benefits. If you’re younger and have significant risk factors, consider purchasing earlier. If you’re older and still healthy, don’t delay. Every year you wait increases the premium and decreases your chances of approval.
The key is to start the conversation now. Review your financial situation, assess your health and family history, and trust a knowledgeable LTC insurance provider to help you navigate your options. Your future self will thank you for planning ahead.