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The other day I was adding up the potential increases in premium costs for a person who wanted to wait just a little while longer to put a plan of protection in place. She was in her late fifties. Waiting just three years to implement a plan of protection could cost the client nearly 20% more in annual premiums.

Several things went into my calculations. First, premiums for this type of coverage are age banded. It costs less the younger you are. And the bands, or increases in annual premium, become wider as age increases. The older we are when making application, the more costly a delay can be. Second, companies may periodically increase premium rates for all new policy holders. In recent years industry wide increases ran approximately 2%. Third, buying this coverage several years from now will require a client to purchase more coverage than today, because the cost of care continues to march upward. A monthly benefit of $4000 today may require $4500 in two or three years just to have comparable coverage today.

The biggest issue, however, is an unexpected change in health condition. A new diagnosis could cause further delay in even submitting an application. For someone who has had breast cancer, the earliest they would be considered by many carriers is two years after the last date of treatment. Higher cost for coverage is the result. If someone is in great health now and could potentially qualify for a preferred rating, they get a 10% discount right off the top. If you should start a new prescription for high blood pressure, that savings would disappear.

The worse case scenario is a diagnosis of a chronic disease or major medical event that would render the individual totally uninsurable. I became uninsurable at age 53. I did not see my heart attack coming. Most people are blindsided by such medical events.

If an individual wants to implement a long term care protection plan, the best time, the most cost effective time do it is NOW. Encourage your friends and clients to do it sooner than later. There is more at risk than you think.