A Parkinson’s diagnosis made a 64-year-old woman uninsurable, leaving her and her husband exposed to six-figure long-term care expenses.
A couple declined a $4,800 annual long-term care insurance policy at age 58, viewing the premium as optional. Six years later, the wife’s Parkinson’s diagnosis rendered her uninsurable, exposing them to $216,000 to $432,000 in potential out-of-pocket care costs.
The couple, with $1.9 million in retirement savings, now faces higher premiums of $5,200 annually for the husband, with reduced coverage. Their decision to delay cost them $28,800 in forgone premiums, creating a self-insurance gap that could deplete their portfolio.
Long-term care insurance premiums rise with age, and health conditions can eliminate eligibility, turning manageable expenses into significant financial risks.