Long Term Care Insurance Cost
Long Term Care Insurance – Costs and Benefits
The very thought of long-term care can send shivers down most people’s spines. Whether it is the constantly increasing long term care costs, or even just the idea of being in an assisted living home, there is not much to look forward to when it comes to long term care.
With that said, the harsh reality is that more than sixty percent of people will, at one point in their life, need the assistance of long term care after turning sixty-five. Forty percent of those that currently receive long-term care are between the ages of eighteen and sixty-four. Because long term care costs are essentially inevitable for the average person, it is important that one evaluate long term care insurance rates, and consider the various ways and means that they can go about reducing their long term care insurance cost.
Long term care insurance premiums are on the rise, as insurance companies struggle to pay for the long term care costs of those living longer than expected. While long term care insurance premiums won’t increase by as much as insurance companies would like, most people with coverage can expect their long term care insurance cost to increase by as much as fifteen percent year-over-year. For those living on retirement, or a limited income, such increases in long term care insurance cost can be prohibiting. Fortunately, there are some very effective ways in which one can reduce their long term care insurance cost.
Shop Around
Perhaps the easiest and most effective way to cut your long term care insurance cost is to shop around the various providers. Before committing to any kind of long term care policy provider, it would be wise to check the long term care insurance rates of a variety of different companies. While the difference in the long term care insurance premiums won’t be overly significant, you will be able to reduce your long term care costs by shopping around and looking for better deals.
Plan Ahead
One of the best ways to reduce your long term care insurance cost is to plan ahead. Most people don’t think about long term care costs until they are older, and costs are higher. Planning ahead could involve researching family medical history, buying long term care insurance at a younger age, and also considering tax benefits involved with long term care insurance plans. By buying younger, you’ll be able to reduce your long term care insurance cost by paying premiums now and avoiding increases to long term care insurance rates that may take place in the future. While tax benefits won’t necessarily reduce your long term care insurance premiums, they may be able to help you get back more money from taxes and thus reduce your overall out of pocket costs. Lastly, it is possible to reduce your long term care insurance cost by knowing the medical history of your family. Provided there are no instances of Alzheimer’s or similar medical conditions in your family, you may not need to pay the long term care costs associated with a lifetime plan.
Speed Pay Premiums
For those that don’t have a family history of a chronic disease, it is possible to reduce their long term care insurance cost by speed paying premiums. Speed paying long term care insurance premiums usually involves paying a significant amount more ahead of time, but reduces the overall costs associated with a long term care insurance plan. The option cuts back on the long term care insurance cost by ensuring that the person paying avoids future increases to long term care insurance rates.
Think Short and Fat
In general, most people can significantly reduce their long term care costs by trimming down their plan. The greater majority of people do not need a lifetime plan. In fact, the average long term care claim is for less than two years. In addition to avoiding lifetime long term care plans, most people can cut their long term care insurance cost by opting for what is known as a short and fat plan. Such a plan offers more daily coverage for a shorter period of time. If the total daily amount is not fully utilized, the plan can be extended without adding an extra long term care insurance cost.
Evaluate How Much Coverage You Really Need
As already mentioned, the average stay for those in nursing homes or assisted living facilities is just over two years. Because most people will not need a plan that covers more than three years, they can reduce their overall long term care insurance cost by opting for a plan that covers three years instead of six, or for life. Lifetime plans can involve long term care insurance premiums that are double those of short term plans. It is a common misconception that the policies of spouses are entirely separate from one another. However, with a shared-benefit policy, spouses can save on their long term care insurance cost in that they essentially share the total number of years on the plan.
Get reviews of all the top long term care insurance companies help you with your decision.
