Can a 90-Year-Old Get Long Term Care Insurance?
Often, older individuals hesitate to contemplate the purchase of long term care insurance (LTCI), and with good reason. The typical perception is that it becomes too expensive or impossible to obtain by the time one reaches a certain age. However, the narrative around long term care insurance for a 90-year-old is more nuanced. Let's explore the challenges, possibilities, and considerations involved.
Challenges and Considerations for a 90-Year-Old Browsing for LTCI
Firstly, while it is technically feasible for a 90-year-old to seek and obtain long term care insurance, the reality is that it might not be a worthwhile endeavor for several reasons. The premiums for such coverage would be extraordinarily high, often rendering the policy prohibitively expensive. Furthermore, it is crucial to understand that if a 90-year-old managed to acquire LTC insurance, the premiums would likely be significantly higher than for someone younger, even if their health were to remain stable or better.
Premiums and Cost Considerations
The cost of LTCI for a 90-year-old would be exorbitant, making it unfeasible. For instance, at the age of 60, it was possible to constrain coverage costs to an affordable $99 per month (115 USD per month currently). However, as one ages, the premiums escalate drastically. Given that a 90-year-old individual might find monthly rates in the thousands, the financial burden becomes overwhelming. It may even be necessary for such an individual to take out loans just to cover the premiums, which underscores the impracticality of pursuing this route.
Other Factors Influencing LTCI Availability and Quality
Even if a 90-year-old could technically get LTCI, the availability and quality of the coverage would be limited. Many insurers have strict underwriting requirements, including physical exams and medical assessments. These additional requirements can make the process burdensome and potentially disqualify elderly individuals who might otherwise be eligible.
Moreover, there is often a waiting period before the policy takes effect. For a 90-year-old, this could mean waiting for additional tests or for one's health to stabilize, which adds stress and uncertainty to an already challenging situation.
Alternative Options: Home-Based Care and Facility Coverage
While the notion of a 90-year-old acquiring long term care insurance may seem daunting, there are other options that could offer some level of protection or assistance. For example, standalone home-based care coverage could be designed to cater to the needs of aging adults who prefer to remain in their homes.
Such a policy might cover services provided by the policyholder's children, offering financial compensation based on a fraction of the monthly coverage amount. For instance, a 90-day waiting period followed by coverage of around $2000 per month could provide some financial relief for those needing care at home.
Additionally, for individuals who may eventually require a long term care facility, there are policies designed to cover a portion of the cost. In this scenario, the policy might contribute around $4000 per month, but this amount is often still lower than the cost of a facility close to the individual’s home after a 90-day waiting period. These amounts are significantly lower than the rates that facilities charge, especially in areas with high costs.
Conclusion
While it is technically possible for a 90-year-old to obtain long term care insurance, the practical and financial realities are often overwhelming. It might not be worth pursuing due to the prohibitively high premiums and stringent underwriting requirements. Instead, individuals in this age group might consider other forms of coverage such as home-based care or smaller facility-based policies. These can provide a more manageable and realistic support system as one ages.
In summary, while the idea of long term care insurance for a 90-year-old might initially seem appealing, the challenges and costs make it a less feasible option. Exploring alternative care options can help manage the financial and emotional burdens of aging.