I am retiring soon with $ 1.5 million. But with a chronic health condition, do I need long -term insurance?

A 64 -year -old man is preparing for a retirement of $ 1.5 million in 401 (K), and a monthly social security check worth $ 2000 and does not exceed a real estate loan of $ 1700.

Diabetes is under control, but the reality of aging-and the possibility of need to help on the road-is it a big question: Should he buy long-term insurance?

It is a common question – good. LTC insurance helps to cover high costs at home, nursing or living facilities with the help of if you need help in daily activities such as bathing, wearing clothes or eating.

But this coverage can be expensive, and the older when serving, the more you pay. Chronic conditions can make it difficult to qualify. Since people live longer, interest in this type of insurance grows. Is it really worth the cost?

LTC insurance premiums rise sharply with your age. A man may pay a policy of $ 60 a month. By 65, this jumps to $ 313. In 70, the cost is $ 410, and by 79 years, the average installments are 676 dollars, according to estimates of MUTUAL OF OMAHA (1) for California.

For women, the curve is more severe. By 79, the average monthly installments are approximately $ 1300.

• Age 60: 249 dollars / 425 dollars

• Age 65: $ 313 / $ 524

• Age 70: 410 dollars / 662 dollars

• Age 75: $ 536 /966 dollars

• Age 79: $ 676 / 1,296 dollars

These numbers are just evidence. Insurance premiums vary and depend on factors such as age and sex, where they live and health conditions. Insurance companies have put prices on the basis of risk. The older applicants are more likely because they are more likely to use benefits sooner. Women often pay more than men, partly because they live longer and need care.

Chronic conditions such as diabetes do not exclude you automatically, but they can mean higher-or denying premiums if not good management. For this reason, progress can be before the age of 65, and while in relatively good health, it can be a smart step.

Now let’s take a look at the numbers of this case:

• 401 (K) Balance: $ 1.5 million

• Social Security income: 2000 dollars per month

• mortgage payment: 1700 dollars per month

• Ltc Premium ability (male, 65 years old): 313 dollars per month

• Annual LTC installment: $ 3,756

The premium will take about 16 % of the monthly social security entitlement and only 0.02 % of the balance of 401 (K), assuming that they are not growing. It is noticeable but not overwhelming (2).