Is it Worth Buying a Pricey Policy?
Even though many people acknowledge the importance of having long term care insurance coverage, not all of them are planning to purchase this product for fear of being subjected to the yearly increase of long term care insurance premiums.
The public cannot be blamed for thinking that these long term care insurance premium hikes happen on a yearly basis. After all, for two consecutive years now the nation has witnessed 10% to 40% increment in the price of certain LTCI policies. However, this wasn’t the case in previous years. According to many longtime policyholders, they’ve been paying the same premium rate for more than 10 years until the recent premium increase that was imposed on their coverage.
Companies marketing LTCI have different reasons for increasing the premium rates of some groups of LTCI policies. Some of these policies, they say, were priced too low that is why they have to make some adjustments since the premium payments that they have been receiving from these policies are no longer sufficient to meet future claims. If they continue with the same premium rates, many people’s LTCI coverage will be put on the line.
However, premium hikes are not necessarily experienced by every single LTCI policyholder. Those individuals who have managed to put a lump sum into their coverage shall be spared from future premium increases. Unfortunately, very few people can afford this mode of payment so majority of insured individuals settle for either the limited-payment method or the continuous-payment mode.
Under the limited-payment method, the insured can pay his policy’s premium for a 10-year period, 20-year period or up to the age of 65. Meanwhile, if the insured chooses the continuous-payment method he has to continuously pay his premium until a benefit trigger occurs and he actually begins to require care.
Sure-Fire Ways to Reduce Long Term Care Insurance Premiums
Aside from choosing the right payment mode, there are other ways that one can save on his LTCI premium and one of the most effective ways is being able to identify his future health care needs.
When a person knows what he is at risk of, the next thing that he will be able to figure out is the level of care that he will most likely need. LTCI specialists have been constantly reminding potential buyers of LTCI policies to look at these two important factors very well for these will determine the success or failure of their coverage.
For example, an individual who may potentially acquire a chronic illness that will subject him to years of care in a nursing home should not bar the mentioned facility from his LTC plan or he could end up with bigger out-of-pocket expenses. But if he really cannot imagine himself entering a nursing home, then he must be prepared to shell out more dollars for a coverage that is designed for medical care at home.
Considering a policy that qualifies under the Partnership LTCI Program is another way to cut back on premiums as this allows buyers to settle for a smaller maximum benefit amount, and should they require ongoing care after having exhausted their benefits they can apply for Medicaid without spending down their assets.
There are countless ways to make long term care insurance premiums more manageable and to find out what these are, contact a licensed LTCI specialist in your area.
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