How to Save More with Long Term Care Insurance
As the cost of care continues to soar, people are beginning to get confused between annual long term care (LTC) costs and long term care insurance costs.
Who can blame them? Today somebody reports about a 3% increase in the cost of care somewhere in the northeastern region and then the following day a financial expert predicts that long term care insurance (LTCI) premiums will increase sometime next year.
So if you look at the whole LTC scenario it is mainly about increasing prices. Whether you acquire care or you plan for it, you will have to spend a chunk of your hard earned money. However, if you study carefully both methods of spending you will come to realize that there is a big difference between them as planning your LTC will cost thousands of dollars less than acquiring care.
Your age and health, however, will come to play very important roles if you intend to prepare your future health care needs with an LTCI policy. If you apply for a policy while you are young and healthy, then there is absolutely no reason to worry about paying a high premium for a potential coverage. Meanwhile, if you will apply later when you’re not only retired but sickly you will most likely spend more on your premium. Still, a rated coverage will cost less in premium than the average annual rate of a home health aide, assisted living facility, or a private room in a nursing home.
Managing Your Long Term Care Insurance Costs
No one and nothing has the power to re-route the cost of care. Americais its target so whether you travel from the northeastern part of the country to the southeastern or vice versa you will not find a single place where the cost of care is reasonable.
Perhaps you’ll manage to arrive in a state where the cost of care is slightly lower than where you used to live, but this does not mean that your new home is already exempted from inflation. The prices of goods and services go up each year because of inflation and thus explaining why you were told earlier that no matter where you go, you will still experience the high cost of care.
Only people who own LTCI policies can confidently face the prohibitive cost of care because they do not have to worry about wiping out their assets to their LTC expenses. Each year, before the need for care kicks in, they would allot a portion of their earnings to the annual premiums of their LTCI policies. These premiums vary according to the requirements of each policyholder and to his age upon application.
To ensure that the money which you put into the premium of your coverage does not exceed your budget, patiently study the elements of a potential policy. See to it that your maximum benefit amount conforms to the cost of care where you live, that your maximum benefit period matches the level of care that you will need someday, and that your policy’s level of inflation protection will increase your insurance benefits overtime.
To learn more tried and tested techniques to cut back on your long term care insurance costs, get in touch with a veteran LTCI broker who can show you the ropes.
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