Page 54 - Growing Old Without a Plan for Long Term Care is not for Sissies_Neat

36 Growing Old Without a Plan for Long Term Care is not for Sissies heart attack, cancer, stroke or even a TIA (warning stroke) you probably will not be able to purchase Long Term Care Insurance in the next few years, if ever. And if you can qualify, the added cost caused by your illness may make the premiums unford- able. Even diabetes can make it diffcult to buy coverage once you’ve been diagnosed with it. If you have been diagnosed with a disease that affects cognitive abilities such as Alzheimer’s or Parkinson’s, you will not be able to purchase Long Term Care Insurance. Also, companies often conduct some type of cogni- tive ability test when you apply. So even if you have not been diagnosed with something like Alzheimer’s, your responses to the cognitive tests may suggest an imminent problem and may prevent you from purchasing Long Term Care Insurance. Health problems that do not disqualify you may still cause an increase in premiums. The longer you wait, the less likely it is that you will qualify for preferred or even standard premium rates. This could add 15% – 30% or more to the premium you will pay. Buying now locks in the beneft your good health buys and the insurance company cannot change your premium just because your health changes. What about delaying purchase and investing the savings? Many people are under the assumption that if they wait to pur- chase Long Term Care Insurance they can invest the money they would have spent on premiums for a few years, eventually purchase a policy and come out ahead. The reality is that unless you can securely invest at a high, tax free rate, you are unlikely to gain enough to compensate for the additional premium charged when you purchase at a later date. This occurs for two reasons.