Can you buy long-term care insurance at 70?
Yes, it is possible for a 70 year old to buy long-term care insurance, but the process is notably more challenging than for younger applicants. A 70-year-old applicant will face stricter medical underwriting, steeper premiums, and potentially limited policy options compared to someone in their 50s or 60s. Insurers assess each applicant's current health and risk factors to determine eligibility, and the window for approval closes significantly after age 70.
The impact of age on premiums and eligibility
The primary reason for the difficulty in securing long-term care (LTC) insurance at 70 is the increased risk perceived by insurance companies. As individuals age, the likelihood of needing long-term care services increases substantially. Insurers mitigate this risk by charging higher premiums. While exact costs vary based on health, gender, and policy specifics, premiums for a 70-year-old can be significantly higher than for a 60-year-old. For example, average annual premiums for a couple at age 70 could be more than double the cost for a couple at 60.
Beyond cost, the age cut-off for applying is a major hurdle. Many insurers set their maximum application age between 79 and 85, meaning a 70-year-old is approaching the end of their eligibility window. A delay of just a few years could result in being completely uninsurable, especially if health conditions develop.
Medical underwriting and common disqualifiers for seniors
To buy a policy, a 70-year-old must undergo a rigorous medical underwriting process. This typically involves a detailed health questionnaire, review of medical records, and sometimes a cognitive or physical assessment. Honesty is critical, as any false or omitted information could lead to a future claim denial. Several pre-existing conditions and circumstances can lead to higher premiums or outright denial of coverage:
- Cognitive Impairment: Any form of dementia, including Alzheimer's, is a common disqualifier. Insurers often conduct cognitive tests to evaluate mental acuity.
- Progressive Neurological Conditions: Diseases like Parkinson's or multiple sclerosis make applicants high-risk and are often grounds for denial.
- Existing Functional Limitations: Applicants who already require substantial assistance with two or more Activities of Daily Living (ADLs)—such as bathing, dressing, or eating—will be denied coverage.
- Recent Medical Events: A recent stroke or cancer diagnosis often results in denial or a long waiting period before a new application can be considered.
The importance of good health at 70
For a 70-year-old, good health is the most important factor for being approved. Insurers want to issue policies to individuals who are healthy and unlikely to file a claim in the immediate future. Those with manageable chronic conditions like high blood pressure or diabetes might still be approved but will likely face higher premiums. A proactive approach to managing health, including regular checkups and a healthy lifestyle, is the best strategy for seniors hoping to qualify.
Alternatives to traditional long-term care insurance for seniors
For those who cannot qualify for or afford a traditional LTC policy at 70, several alternatives are available. These options offer different levels of coverage and financial commitment.
- Hybrid Life Insurance Policies: These combine life insurance with an LTC rider, allowing you to use a portion of the death benefit to cover care costs while you're alive. If you never need care, the full death benefit passes to your beneficiaries. Underwriting for hybrid policies can sometimes be less stringent than for traditional LTC policies.
- Long-Term Care Annuities: These single-premium annuities use a lump-sum payment to create a pool of funds for long-term care. The initial investment is multiplied, and the funds can be used tax-free for qualified care expenses. Underwriting is often easier for these products compared to traditional LTC insurance.
- Self-Funding: This strategy involves using personal savings, investments, and retirement accounts to cover potential care costs. Self-funding offers the most flexibility, allowing you to use your assets as you see fit. However, it requires a significant financial cushion to protect against potentially high and long-lasting care costs.
- Medicaid: A government-funded program for those with limited income and assets, Medicaid can cover long-term care costs. It is a means-tested program, meaning you must first spend down your assets to qualify. The level of care and choice of facility under Medicaid may be more limited than with a private policy.
- Veterans' Benefits: Eligible veterans may receive long-term care benefits through the Department of Veterans Affairs (VA). These can help cover care costs in VA facilities, assisted living, or at home, but eligibility depends on various factors.
Comparing long-term care options at age 70
Choosing the right path requires careful consideration of your financial situation, health, and priorities. The following table provides a high-level comparison of the most common options for a 70-year-old.
| Feature | Traditional LTC Insurance | Hybrid Life Policy | Self-Funding | Medicaid |
|---|---|---|---|---|
| Premium Cost at 70 | Very high | High; may be a single, large premium | N/A (Funded by personal assets) | N/A (Means-tested) |
| Eligibility | Strict medical underwriting; approval not guaranteed | Less stringent underwriting; approval more likely than traditional | No eligibility requirements | Based on strict income and asset limits |
| Benefit | Provides a pool of money specifically for LTC | Death benefit can be accelerated for LTC | Total control over assets | Covers LTC, but may limit choice of care |
| If Care is Never Needed | Premiums are lost | Death benefit is paid to beneficiaries | Assets remain in your estate | N/A |
| Inflation Protection | Typically available as a rider | Varies by policy | Depends on investment strategy | N/A |
| Consideration | Best for very healthy individuals with significant income who can afford the high cost | Good for those who want a death benefit and potential LTC coverage with less strict underwriting | Suitable for wealthy individuals with a large enough nest egg to self-insure | Last-resort safety net for those with limited financial resources |
Conclusion
While a 70 year old can buy long-term care insurance, it is a difficult and expensive endeavor. The process is subject to strict medical underwriting, and premiums are substantial. Nearly half of applicants in this age bracket may be denied coverage due to pre-existing conditions or declining health. For those who qualify, the expense may still be a deterrent. Fortunately, several viable alternatives exist, including hybrid life insurance policies, LTC annuities, and strategic self-funding with personal assets. Evaluating personal health, financial resources, and risk tolerance is essential to determine the best path forward. For many, a non-traditional route may offer a more practical and affordable way to plan for future care needs.
