Imagine you own a crystal ball. That crystal ball tells you there is a 0% chance you’ll die in the next 10 years. You’re not going to buy a 10-year term life insurance policy. Most people in their 30s, 40s and 50s would assess their odds of ending up in a nursing home in the next 10 years at the same odds. While that would not be totally accurate, it is unlikely. That’s just the rub with insurance. No one wants to pay a premium for something they won’t use.
At the same time, no one wants to be in the situation where they need to use it. When it comes to long-term care insurance, that often leads to folks waiting too long. But what is the optimal age to buy so that you’re not paying for too long but also not paying too much?
