Policy Options for Lower Long Term Care Insurance Premiums
The public is not the only one who is puzzled and surprised by the big increase of long term care insurance premiums because even insurance providers themselves are shocked of the big price changes.
As a result of this price increase, the insurance companies are forced to sell LTC plans with higher and more expensive premiums in order to keep the funds going and to have sufficient financial resources for the other policyholders who are yet to use their policy benefits.
Sadly, some Americans find this impractical since there are other necessities that need to be satisfied immediately and they prioritize these than availing a pricey LTC policy, which they would not use right away, unless they are already nearing their retirement age or if they need medical assistance due to their poor health condition.
But if one would look closely, the most practical way to save on policy premiums is to avail their insurance plans as early as possible. Once an individual confirms that he is going to buy an LTC insurance plan, then the rates that would apply will be based on the current costs of LTC services, facilities and other medical rates being offered at the time of his plan purchase.
He can then cut costs in his monthly premiums as compared to the policy amount that he might get if he postpones it for five years or more. But aside from this, there are still other options as to how a person can save in terms of his long term care insurance premiums.
The applicants for LTC plans are often given the choices and alternatives that they prefer to include in their insurance contracts. Whatever they choose will directly affect the costs and rates of their LTC plans. Below are some of these policy options:
1. Benefit Amount — This LTC feature dictates the allowed amount of LTC services that a policyholder can incur every time he uses his plan’s benefits. Lower benefit amount means cheaper premiums but the policy owner must make sure that his chosen benefit amount can cover all his needed services.
2. Benefit Coverage Period — Policies with longer benefit coverage period are more expensive than those with three to five years’ coverage. Individuals with serious medical condition might even probably need a lifetime coverage, which means more expensive policy premiums.
3. Waiting Period — This is the number of days that the policy owner would pay all the LTC services and facilities that he would use before he can expect reimbursements or payment from his insurance provider. Individuals with 90 or 100 days waiting period have more chances of getting cheaper policy rates.
4. Inflation Protection — Some policies that were bought when the person was aged 70 or above may not provide certain levels of inflation protection. But for policies that were acquired at a younger age, inflation protection must be included in order to protect the insurance policy against the continuous increase of LTC costs.
By choosing the right options and policy type, the individual will surely have a bigger shot of getting more budget-friendly and affordable long term care insurance premiums. To understand more about this, ask for an insurance agent’s assistance who would be more than willing to help you with your plan inquiries.
Visit CompleteLongTermCare.com to get free long term care quotes and tips on lowering long term care insurance premiums.
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