Once you turn 50, it’s a good idea to start thinking about long-term care. Long-term care is asset protection, and it’s appropriate both before and after you are retired.
It is beneficial to purchase this type of insurance by age 55, to lock in a lower rate before you begin to experience a decline in health. Generally, purchasing insurance prior to your mid-60s is a good way to prevent becoming uninsurable (and keeps the cost of insurance low). As you get closer to retirement, it may make more sense to get a long-term care policy instead of long-term disability. Long-term care will provide a daily income benefit to have someone take care of you in a nursing home or in your own home, whereas long-term disability provides income to you and your family if you are unable to work.
Keep in mind that long-term care insurance won’t provide you with any income, but it will preserve your net worth if you need medical and custodial care. Insurance agents who sell long-term disability insurance can help you with this very important form of asset protection.