Avert Long Term Care Insurance Premiums
You might ask, is it possible to avoid paying high long term care insurance premiums? The answer is a big YES! People decide how much they’re going to shell out annually for their long term care insurance (LTCI) policies and not the insurance firms that issue these.
To many people, it would seem that every insurance company is responsible for dictating how much buyers of LTCI policies should pay annually or monthly on premiums, but the truth is what you put in your policy basically determines how much you’re going to pay in premiums.
Although everybody has been advised time and time again to plan their future health care early, a huge percentage of elderly people still remain without an LTCI policy which will shoulder their long term care (LTC) expenses someday.
Instead of pointing fingers which is a total waste of time, everybody should start considering ways to secure an LTCI policy that promises a reasonable premium.
There are many things that one can do to pull down his insurance premium to the amount which he is capable of maintaining.
You can start with your LTCI coverage period. Instead of going for a five-year or lifetime coverage period, why not settle for a shorter one such as two or three years? Paying for a very long benefit period is senseless especially if you know your health background too well.
For instance, if you’re 60 and still capable of lifting weights and running around the neighborhood park for two hours without gasping, chances are you won’t be requiring care in the next 15 years unless, God forbid, some untoward incident occurs.
Apart from a shorter benefit period, a smaller daily or monthly benefit will significantly lower your annual long term care insurance premiums. Going for a $300 maximum daily benefit is pointless if the average daily cost of care in your state of residence is only $150. It would be a wise move to canvas rates of LTC facilities in your area so that you have an idea of how much you’ll need to prepare for your future health care needs.
For instance, if the average daily rate of a home health aide in your city is $113 it won’t hurt to have a maximum daily benefit of $100 stipulated in your LTCI policy. You can pay the remaining amount using a portion of your nest egg. Sure you had something put away before retirement, right?
One’s choice of elimination or waiting period is also a determining factor of his annual premium. Having a shorter waiting period equates to a higher premium. If you choose a 90-day or even 365-day waiting period which is truly ideal, your premium will drop in a significant rate.
Meanwhile, married couples can save a chunk of money on LTCI annual premiums, as insurance companies offer huge discounts on joint policies. Discuss with your spouse how good an investment LTCI is.
By taking these factors into consideration, you’ll be surprised how easy it is to manage long term care insurance premiums.
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