Depending on a number of factors, the cost of Long Term Care Insurance can vary greatly. Fortunately, there are some ways to save money when purchasing a policy.
First, make sure that you choose a policy that has a built-in growth rate. This means that it will continue to grow each year to keep up with inflation. If you choose a policy that doesn’t have a built-in growth rate, the cost of the policy will increase. Depending on your age, health, and location, premiums may vary. Generally, premiums for Long Term Care Insurance are higher for older applicants, but they may be lower for younger applicants. You can also buy Long Term Care Insurance for a base model. However, this is only one way to pay for the insurance. Some financial products offer a lifetime pay option, which means you will pay the entire premium for the policy at once. This option is less expensive than a hybrid policy.
In addition, some insurance companies will offer a discount to applicants with preferred health. For example, if you buy Long Term Care Insurance and you’re a 55-year-old female, you can get a premium rate that’s just over a third of what an individual male would pay. There are also discounts for married couples, which can save you hundreds of dollars over a single applicant.
Another way to save money is to purchase a policy that offers joint coverage. Most Long Term Care Insurance companies will let you buy a policy for yourself and your spouse. This means that you both share the costs of the policy. This can be a good way to alleviate the risk of using your policy up quickly.
When purchasing a policy, make sure that you take into account your age, health, and family history. If you have a history of chronic illness or excessive weight, you may be charged a higher premium. Additionally, you may be required to undergo a medical exam. Some insurance companies offer a discount of up to 15 percent to applicants who have a preferred health rating.
Long Term Care Insurance prices can also vary greatly depending on the benefits that you choose. In general, Long Term Care Insurance policies will pay up to a specific amount per day. These amounts range from $50 to more than $500 per day. There are other ways to adjust your policy’s benefits, such as adding add-ons. The more benefits that you add, the higher the premium. If you’re considering Long Term Care Insurance, talk to a financial advisor. You can also itemize deductions to count some of your premiums as medical expenses.
The average cost of a traditional Long Term Care Insurance policy is around $2,000 per year. This rate is largely based on the experience of the insurance carrier. The rates for new policies have remained steady for the past year, but prices are expected to rise in the future. Buying Long Term Care Insurance can be a wise decision, but it’s important to shop around for the best prices.