When and Why to Consider Buying Long-Term Care Insurance

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One of the most frequently asked questions about long-term care insurance is: When should I buy it? The short answer is—sooner than you think. Most experts recommend purchasing coverage in your 50s or early 60s. Here’s why timing matters so much.

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Long-term care insurance premiums are based on your age and health at the time of purchase. The older you get, the more expensive it becomes—and if health issues arise, you could become uninsurable altogether. For example, someone buying a policy at age 55 will pay a significantly lower premium than someone waiting until age 65. Moreover, over 20% of LTC insurance applicants over the age of 60 are declined due to health problems.

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Waiting until you need care will eliminate your ability to get insured. Like most types of insurance, LTCI is designed to be purchased before the risk materializes—not after.

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So why invest in long-term care insurance at all? Consider these emotional and practical advantages:

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1. Financial Freedom and Asset Protection  

Without insurance, many families pay out of pocket until their savings are exhausted, at which point they must rely on Medicaid. Unfortunately, qualifying for Medicaid often requires spending down assets to poverty levels. LTC insurance can help protect your home, retirement savings, and inheritance plans.

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2. Less Stress on Loved Ones  

Many caregivers are unpaid family members juggling care duties with jobs and parenting. In Utah, this dynamic is especially common in intergenerational households. LTC insurance can cover the cost of professional help and respite care, providing relief and better outcomes for both caregivers and recipients.

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3. Greater Choice and Control  

Having insurance puts the decision-making power in your hands. You can choose where and how you receive care—whether that's in your own home or a facility of your choosing—rather than being limited by what Medicaid or family members can provide.

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In short, long-term care insurance is not just a financial tool; it’s a way to uphold your dignity and autonomy as you age.

What to Look for in a Utah Long-Term Care Policy

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Purchasing a long-term care insurance policy is a significant decision, and not all policies are created equal. Fortunately, Utah follows federal standards for LTC insurance, so policies sold in the state typically comply with federal guidelines for tax-qualified plans. But there are still many variables to consider when selecting a policy that's right for you.

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1. Daily Benefit Amount and Benefit Period  

One of the first decisions you’ll need to make is the daily benefit amount—this is how much the policy will pay per day for care. In Utah, professional in-home care can cost $150–200 per day, while nursing homes may exceed $300/day. Choose a benefit amount that aligns with average state costs and your preferences (e.g., in-home vs. facility care).

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The benefit period determines how long your policy will pay for services (e.g., 3 years, 5 years, lifetime). A longer benefit period increases premiums, but also provides greater security if you need extended care.

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2. Elimination Period  

The elimination period is like a deductible; it's the waiting period between the time you become eligible for benefits and when your insurance starts paying. Common periods range from 30 to 90 days.

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In Utah, families often rely on savings or short-term assistance during this time. Choosing a longer elimination period can reduce premiums, but be sure you can cover those initial costs out-of-pocket.

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3. Inflation Protection  

Given that healthcare costs rise steadily, inflation protection is a must-have for most buyers under age 65. This rider increases your benefit over time, keeping pace with the growing cost of care.

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For residents of Utah where costs are increasing—especially in growing urban areas like Salt Lake City—choosing compound inflation protection (rather than simple) can make a significant difference over the span of 20–30 years.

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4. Partnership Policies  

Utah participates in the Long-Term Care Partnership Program, which allows policyholders to protect more of their assets if they eventually need to apply for Medicaid. This is a strong incentive for choosing a qualifying policy, as it blends private insurance with public safety nets.

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5. Company Reputation and Financial Strength  

Work with companies that carry solid financial ratings from firms like AM Best or Moody’s. The last thing you want is a provider that raises rates too steeply or fails to provide timely benefit payments. Consult with a trusted insurance broker familiar with Utah-specific policies and regulatory requirements.

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Remember, no two families' needs are identical. Think about family health history, lifestyle, financial goals, and personal values when choosing coverage.