Cost-Saving Tips on LTCI
The cost of long term care insurance can be daunting for many families. Remaining insured for long term care within a prolonged time can also be expensive. You can afford and keep up with the premiums of your LTCI policy without hurting your budget through these tips.
Shop before you buy.
Although buying a long term care insurance policy sooner works well, avoid rushing it. Examine the pricing and benefit rider payments of LTCI policies from multiple insurance providers. An insurer may offer a significantly lower pricing than another insurer for the similar LTC benefit. Consider an insurance carrier’s financial rating and reputation of service to clients as well.
Be sure to take your time in assessing and comparing various long term care insurance policies.
Take advantage of discounts.
One of the reasons for buying a long term care insurance policy early on is to benefit from preferred health discounts. If you are in your forties or fifties and lack serious health complications, apply for insurance coverage soon. Aside from reducing LTCI cost, you also minimize the chances of losing eligibility due to a debilitating ailment and other pre-existing conditions.
You can also save money through marital or partner discounts, which is offered by the majority of insurance companies that market LTCI. Insurers vary in guidelines regarding unmarried and cohabitating partners, so look through the details of these guidelines. If you and your spouse or partner both purchase an LTCI policy, there is a 10% to 25% higher discount than if just one buys a policy.
Go for narrow.
Rather than settle for a wide LTCI coverage, which has a maximum benefit amount, longer benefit period, and no waiting period, narrow down your policy options to lower the cost.
Choose a daily or monthly benefit amount that will be sufficient enough for your care needs, especially if there is no need to max out your benefits. Even a $50 difference in benefit amount will save substantial money. A lifetime benefit period can be 30% to 40% more expensive than a five-year maximum benefit period. Choose a two-year or three-year benefit period instead as they match the average time span an individual receives long term care.
Moreover, get a 90-day waiting period as the majority of LTCI policyholders do.
Choose to pay annually.
Annual payments may be evidently larger than monthly payments, but this mode of payment actually allows you to minimize LTCI cost. By choosing to pay premiums every month, you also become subject to interest and surcharges that compound your expenses. Prefer a yearly payment instead.
Utilize the Free Look period if needed.
After buying an LTCI policy, the insurance carrier allows you to give back the policy with a full refund of premiums you already paid within a minimum time period of 30 days. This is called the free look period. Feel free to use this privilege if you realize that a policy is too expensive, or if you found another policy that best matches your financial capabilities and specific care needs.
Are You Ready for Long Term Care?
Nearly 70% of Americans will face long term care costs in their senior years. Ready yourself for the financial and emotional impact that long term care can place on your family. Start planning by learning your options through free quotes from Acsia Partners.