At what age should you buy long-term care insurance according to Dave Ramsey?

Oct 21, 2025 3 min read •

senior care Financial Planning Insurance

Seven out of ten Americans over age 65 will need some form of long-term care, a cost that can decimate a lifetime of savings. To protect your nest egg, financial guru Dave Ramsey has a clear, strategic recommendation for when you should buy long-term care insurance.

Quick Summary

Financial expert Dave Ramsey advises individuals to purchase long-term care insurance around age 60, as this timing balances the cost of premiums against the risk of needing care and potential health changes. Waiting until later can result in higher costs or even being denied coverage.

Key Points

Age 60 is the recommended sweet spot: Dave Ramsey advises considering long-term care insurance around age 60 to balance premium costs and coverage needs effectively [1].
Health is a key factor: Buying at age 60 increases the likelihood of being approved for a policy at favorable, lower rates before health issues arise [1].
Protects your assets: LTCI is a strategic tool for safeguarding your retirement nest egg from the potentially crippling costs of extended care [1].
Waiting increases risk: Delaying beyond age 60 can lead to significantly higher premiums or even denial of coverage due to declining health [1, 2].
Evaluate policy features: Critical features to consider include inflation protection, the benefit period, and the elimination period to tailor the policy to your needs [1].
Alternatives exist: For high-net-worth individuals or those seeking different options, hybrid policies or self-insuring are potential alternatives to explore [1].

Dave Ramsey's Recommendation: The Age-60 Sweet Spot

Dave Ramsey recommends considering the purchase of long-term care insurance (LTCI) around age 60. This age is considered optimal because it balances the cost of premiums with the increasing likelihood of needing care, while also allowing individuals to secure coverage before potential health issues arise that could make insurance more expensive or even unobtainable [1, 2]. Buying too early means paying premiums for many years, potentially negating savings, while waiting too late significantly increases costs and health risks [1, 2].

The Rationale Behind Ramsey's Age-60 Advice

Ramsey's recommendation is based on several key factors:

Balancing Cost and Coverage

LTCI premiums are influenced by age and health [1]. Purchasing at age 60 offers a balance, providing more affordable premiums than waiting longer, while avoiding paying premiums for an excessive number of years [1]. By this age, many individuals are in a better financial position to manage the cost of premiums [1].

The Health Underwriting Advantage

Health underwriting is crucial for LTCI [1]. As you age, health risks increase, which can lead to higher premiums or even denial of coverage [1]. Applying around age 60, when most people are still in relatively good health, helps secure favorable rates and increases the chance of approval [1].

Protecting Your Nest Egg

Long-term care costs can be very high and can deplete retirement savings [1]. LTCI helps protect your assets by covering these expenses, whether for in-home care, assisted living, or a nursing home [1]. This provides financial security and prevents your loved ones from bearing the burden of these costs [1].

The Risks of Waiting Too Long

Delaying the purchase of LTCI past age 60 carries significant financial and health-related risks:

Escalating Premiums: Premiums increase substantially with age [1, 2]. Waiting can result in significantly higher annual costs [2].
Health Deterioration: Developing health conditions later in life can make it difficult or impossible to qualify for coverage [1].
Limited Options: Waiting may reduce the available policy options and features [1].

Comparing LTCI Planning: Ramsey's Approach vs. Waiting


Feature	Buying at Age 60 (Ramsey's Approach)	Waiting Past 65
Annual Premiums	More affordable, based on good health [1, 2].	Significantly higher; rates can increase with each passing year [2].
Health Underwriting	High likelihood of being approved with favorable rates [1].	Higher chance of being declined due to new health conditions [1].
Total Lifetime Premiums	Less years of payments, potentially lower total cost [1].	Higher annual premiums, though paid over fewer years. Total cost can be unpredictable [1, 2].
Financial Security	Provides earlier peace of mind and secures assets [1].	Assets are vulnerable to high, unplanned long-term care costs [1].
Policy Options	A wide range of options and riders are typically available [1].	Fewer options due to age and health; inflation riders may be more costly [1].

Making Your Decision: Other Considerations

Understanding Alternatives

Alternatives to traditional LTCI include:

Hybrid Life Insurance Policies: These combine a death benefit with a long-term care component [1].
Self-Funding: Possible for individuals with very high net worth who can cover costs from their own assets [1].
Health Savings Account (HSA): HSAs can be used for qualified medical expenses, including LTCI premiums, with tax advantages [1, 3]. More information on this can be found at the National Council on Aging [3].

Evaluating Policy Features

When choosing an LTCI policy, consider these features:

Inflation Protection: Essential to ensure benefits keep pace with rising care costs [1].
Benefit Period: Determine how long coverage should last, often three to five years [1].
Elimination Period: The waiting period before benefits begin; a longer period can lower premiums but requires self-funding during that time [1].

Conclusion: A Strategic Approach to Protection

Dave Ramsey's recommendation to purchase long-term care insurance around age 60 is a strategic component of retirement planning [1]. It aims to protect assets, secure affordable coverage while healthy, and provide peace of mind by addressing the potential high costs of long-term care [1]. Making an informed decision based on timing, benefits, and risks is crucial for safeguarding your financial future [1].

Frequently Asked Questions

Ramsey suggests age 60 because it represents a balance between premium affordability and the increasing risk of needing care [1]. At this age, most people are still healthy enough to secure coverage at a reasonable rate, while avoiding paying premiums for too many years unnecessarily [1].

Waiting increases your risk for two main reasons [1]. First, premiums increase significantly with age [1, 2]. Second, you are more likely to develop health conditions that could cause your application to be denied or result in much higher premiums [1].

Ramsey recommends LTCI for most people who have assets to protect and can afford the premiums [1]. For those with a very high net worth who can comfortably self-insure, it may be less of a necessity, but it is generally a key part of his financial plan for the average American [1].

If your health declines, you may find that you can no longer qualify for a traditional long-term care insurance policy [1]. Insurers use medical underwriting, and certain pre-existing conditions can result in a denial of coverage [1].

While Ramsey most often discusses traditional LTCI, hybrid policies that combine long-term care benefits with life insurance are a valid alternative [1]. These policies can be a good option for those who want a long-term care benefit but also want to guarantee a death benefit if care is not needed [1].

A policy protects your family by preventing the high costs of care from becoming a financial and emotional burden on them [1]. It ensures that the assets intended for your family's future are not used up by long-term care expenses [1].

Ramsey emphasizes purchasing a policy with strong inflation protection to account for rising care costs [1]. He also recommends considering a benefit period that aligns with the average length of care needed, typically a few years [1].

References

Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice. Always consult a qualified healthcare provider regarding personal health decisions.