Long term care insurance can be costly, but it could save you from incurring high care costs during later years and help protect against draining savings or having to rely on family for assistance.
Cost of Long Term Care Policies Dependent Upon Age and Health Conditions The price of a long term care policy varies based on age and health status; different companies also charge different rates, making comparison important when searching for policies. It’s advisable to obtain quotes and shop around.
Typically speaking, when purchasing an insurance policy as an early adult it will cost less due to insurance company assumptions that you are less likely to need assistance that the policy pays for and thus charge less for it.
Not only can your age impact the price, but so will the length and amount of coverage, daily benefit amount and inflation rider options available through various policies can as well. A three-year policy with a $3,500 per day benefit costs much more than two-year coverage with $2,500 benefits per day; similarly adding inflation riders that increase benefits each year due to rising healthcare costs could further raise premiums considerably – although many experts do not advise adding them.
When shopping for an insurance policy, be sure to seek out companies with outstanding reputations and financial stability. Consumer Reports is an invaluable source of reviews; don’t forget to inquire as well about whether rates have increased.
Attributing to your cost of long term care insurance are factors related to both your own health and family medical history. Certain conditions increase risk to insurers, which increases costs accordingly; thus it’s wise to investigate all available policies carefully before making a final decision on purchasing one or considering alternatives altogether. Certain medical conditions could prevent you from purchasing policies altogether!
Though long term care insurance can be an expensive investment, it’s worth remembering that any money spent can be tax-deductible up to certain limits and premium payments may even come out of pretax health savings accounts. Furthermore, depending on your situation you may even qualify for group coverage through your employer or government programs.
If you’re curious to gain more information on long term care insurance and its role in your overall financial plan, reach out to a Janney Montgomery Scott advisor in your area for a consultation. Our professionals are committed to helping you meet your retirement goals and can walk you through exploring your options. Additionally, our free long term care calculator can give an estimate of cost.