Saving on Long Term Care Insurance Premiums
Investing in long term care insurance will cost a lot of money but not exactly your entire savings if you know how to strategize your coverage. If you’re wondering how to save on long term care insurance without compromising your health care needs, read on.
Long term care insurance is, indeed, a necessity nowadays as the cost of care continues to go up and it’s even projected to quadruple in 2030. However important, it is not just any product that you can buy and take home because if you do this in haste you can risk losing whatever assets you’ve accumulated through many years of hard work.
Give it a lot of thought first and as much as possible discuss it with your spouse. Married couples, by the way, can get 10% to 40% discount on a joint long term care insurance (LTCI) policy. What’s more, they can enjoy high deductibles if they have a shared pool of benefits.
Meanwhile, LTCI buyers with a perfect health condition can receive a good health discount of 10% or 20% on their LTCI premiums.
Although these premium discounts may seem attractive it is only applicable under certain conditions. You have to discuss a potential LTCI policy with your insurance agent to know which LTCI discounts are available to you.
How to Save on Long Term Care Insurance
The premium discounts that you may receive from buying an LTCI policy are only considered as perks. If you really wish to save on the price of your policy you have to study the components and variables of an LTCI policy.
Your policy’s maximum benefit amount should not be too big because if it is you will risk paying a higher annual premium. As long as amount of your maximum daily benefit would conform with the cost of care in your area there is no reason to fear paying more out-of-pocket for care with your personal resources.
As a matter of fact, financial planners say it is all right to settle for a policy with a slightly lower benefit. You can simply pay the small excess from out-of-pocket. For instance, if the average daily rate of nursing homes in your area is $200 you can opt for a daily benefit of $150 and just foot the remaining $50 which is no longer covered by your policy.
Going for a lower daily benefit will save you a chunk on your annual premium. Besides, having partial LTCI coverage is better than not having any at all, and this is definitely more ideal than aiming to maintain a very high premium as this may even result in policy lapse.
Apart from the amount of your benefits, your LTCI policy’s maximum benefit period is also an important determinant of your annual premium. Instead of a five-year benefit period you can purchase an LTCI coverage for three years as this is, after all, the average nursing home stay according to professional nurses.
Get in touch with a professional LTCI agent to learn about other effective ways on how to save on long term care insurance premiums.
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