Should You Buy Long-Term Care Insurance Before Year-End?

As the end of the year approaches, many people take stock of their finances—updating retirement contributions, reviewing insurance policies, or thinking ahead to tax season. But one question often gets pushed aside until it’s almost too late: Should you buy long-term care insurance before 65?

It’s not the most exciting thing to think about, but the decision can make a huge difference for your future. Waiting too long can mean higher premiums, limited coverage, or even being denied altogether. Acting earlier—especially before retirement age—often opens doors that won’t be available later.

Here’s what you need to know before the year comes to a close.

Why Long-Term Care Insurance Matters

Most of us hope we’ll never need help with daily activities like bathing, dressing, or managing medications. But the reality is sobering: the Department of Health and Human Services estimates that 70% of Americans over age 65 will need some form of long-term care during their lifetime.

And it isn’t cheap. A private room in a nursing home now averages over $100,000 per year. Even assisted living or in-home care can drain savings quickly. Without a plan, the financial burden often falls to spouses, adult children, or rapidly diminishing retirement accounts.

Long-term care insurance is designed to protect against this risk. It helps cover the cost of care, preserving your retirement savings and relieving your family of the heavy financial and emotional toll.

The Age Factor: Why Before 65 Matters

When it comes to buying long-term care insurance, age and health are everything.

• Premiums are lower when you’re younger. Buying at 55 or 60 can mean thousands in savings compared to waiting until 70.
  
• Health status determines eligibility. A new diagnosis: diabetes, high blood pressure, even arthritis, can limit your options or disqualify you entirely.
  
• Insurers tighten standards after 65. The older you are, the fewer carriers will approve your application.

Think of it like locking in mortgage rates. The earlier you secure a policy, the more predictable (and affordable) your long-term costs will be.

Mistake #1: Assuming Medicare Will Cover It

A common misconception is that Medicare will pay for long-term care. Unfortunately, it doesn’t. Medicare may cover short-term skilled nursing or rehab following a hospital stay, but it doesn’t pay for ongoing custodial care.

That’s why relying on Medicare alone is a costly mistake. Without long-term care coverage, families are often forced to dip into retirement accounts or spend down assets until they qualify for Medicaid.

Mistake #2: Waiting Until Retirement to Decide

It’s natural to think: “I’ll handle this once I’m retired and have more time.” But by then, your premiums will be significantly higher, and your health may not cooperate. Each year you wait increases the chance of being declined.

Buying before 65 gives you the best balance of affordability and insurability.

Mistake #3: Not Exploring Hybrid Options

Today’s market isn’t just about traditional long-term care insurance. Hybrid policies combine life insurance with long-term care benefits, offering more flexibility. If you never need long-term care, your family still receives a life insurance payout. If you do, the policy helps cover the costs.

These policies can feel like “two solutions in one” and often make the decision easier for people hesitant about paying into something they might never use.

The Year-End Advantage

So why decide before the calendar flips? Year-end is a natural checkpoint for financial planning. Premiums are likely to rise again in 2025 as insurers adjust for healthcare costs and inflation. Getting a policy in place now means:

• You lock in your age-based rate before another birthday.
• You start the new year with peace of mind that this piece of your retirement plan is covered.
• You may benefit from tax advantages—premiums for qualified long-term care policies are often deductible up to certain limits.

The Bottom Line: Don’t Wait Until It’s Too Late

The question isn’t whether you might need long-term care—it’s whether you’ll be prepared when you do. Buying long-term care insurance before 65 is often the smartest way to secure coverage at the lowest cost, while you’re still healthy enough to qualify.

If you’ve been putting it off, year-end is the perfect time to make the decision. Your future self, and your family, will thank you.

At American Legacy Solutions, we help families evaluate long-term care options, compare policy types, and integrate coverage into a bigger retirement and legacy plan. You don’t have to figure it out alone.

Ready to explore whether long-term care insurance makes sense for you before 65? Contact us today and let’s make sure your plan is in place before year-end.