Why and when to buy it
As the population ages and life expectancies increase, the likelihood that retirees will need long-term care rises. According to a 2005 study, 69% of Americans age 65 will need long-term care at some point in the future, with the average duration of care being about 3 years.1 Pair this with the high costs of long-term care and you can see the need to plan accordingly.
One thing that scares retirees away from long-term care insurance is the cost of the policy. If you wait until your 70s or 80s to buy it, premiums are very expensive, and some policies even have age limits. Considering this, it's best to purchase long-term care insurance in middle age when premiums are lower and eligibility standards are more flexible.
1 Kemper, P., Komisar, H.L., and Alecixh, L., "Long-Term Care Over an Uncertain Future: What Can Current Retirees Expect?" Inquiry 42(4):335-350, 2005
