How to Get Cheaper Premiums from Long Term Care Insurance Companies
It is no doubt that every one of us works hard to give our families and ourselves a better and much comfortable life. We think that saving up a lot of money will be the key to attain this, without really understanding that the value of money depreciates and that there are other ways of having good investments for the future, one of this is owning a long term care insurance policy that can be purchased from private insurance companies in the country.
But sadly, compared to the number of those who still do not have a long term care plan, the number of LTC insurance plan owners are way lower, 10 million individuals as opposed to the 32 million people without it.
One reason behind this fact is that most people find the rates and monthly premiums of such policies expensive. Majority of the population cannot afford the prices that insurance providers offer, thus causing the people to lose their interest in it.
What they do not know is that the high rates and prices of these LTC insurance policies give the policy owner the possibility of receiving more or higher LTC services than what they had actually paid for through its inflation protection feature.
Inflation protection is one of the three compulsory features of any LTC insurance plan. This has the capacity to adjust the value of the policy even if it was purchased years before its actual usage. It has certain levels that determine what kind of inflation protection will be given to a certain insurance policy, and these levels are based on the age of the individual when he bought his insurance plan.
Most people may not also be aware of some of the factors that LTC companies consider to be able to give cheaper or lower rates and monthly premiums to the policy applicants. Yes, you read it right. These companies have certain requirements so that the policy applicants can be granted affordable prices for their policies.
Age plays a major role in determining the price of an LTC insurance plan. Insurance companies prefer those applicants who are younger because they have stable financial resources to pay their monthly premiums, and they are much healthier than those policy applicants who are nearing their retirement age.
Aside from the applicant’s age, his current health condition, as well as the medical history or background of his family, are also considered. This is to determine the possible disease or illnesses that the individual might have in the future. Insurance providers will also ask the individual if he smokes or not, and his answer might directly affect the cost of his LTC insurance policy.
The exact location or region in a state where the insured person plans to receive or use his policy benefits also affect the rates of his monthly premiums because some states have higher or more expensive prices than the others.
If these aforementioned conditions of long term care insurance companies were followed by someone who is willing to purchase an LTC insurance plan, then he might just get a shot at getting a policy that would not be a burden to his other financial responsibilities.
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