As a long-term care insurance consumer, it’s essential that you understand the cost of your policy. Shop around to ensure you find premiums and coverage suitable to your individual needs.
Long term care insurance becomes more costly the longer you put off buying it, since its coverage reflects your age and can increase faster than your income.
As with any major purchase, it is also crucial to carefully consider your savings and income when purchasing long term care policies. Without savings or an income sufficient to purchase long term care policies, purchasing such coverage might not be possible.
Long-term care insurance policies can help prepare for unexpected events by offsetting potential future costs associated with long-term care services and protecting financial assets.
Cost of long-term care will vary based on factors like age, benefits selected and type of policy chosen, health status and location.
Early preparation is one of the best ways to be ready for anything, but purchasing long-term care insurance policies before they’re needed may not always be feasible for most.
Long-term care insurance comes in two forms, either as a standalone policy or integrated with health insurance. When purchased independently, an insurer will pay your home care agency or skilled nursing facility directly on your behalf. With integrated plans, both options allow the same payment.
Purchase an integrated long-term care policy and the insurance company will provide a pool of benefits you can use for expenses of any sort, such as fixed amounts or percentages of your gross income.
Benefits are generally paid out daily or monthly in fixed amounts; if additional assistance is required than allowed for by your policy, these amounts may be increased accordingly. Typical policies span two, three, or five years before benefits stop being received.
Benefits provided through long-term care insurance plans typically cover long-term services, such as home health aides or nursing care at a skilled nursing facility or assisted living community. While certain insurance companies offer unlimited lifetime benefits, this option usually costs more than fixed amount benefits.
Marital status can have an effect on the cost of long term care insurance as well. Couples are more likely to qualify for discounts than single applicants.
Gender can play an influential role in your long-term care insurance cost, as women generally live longer than men and thus tend to pay higher premiums for similar policies.
Carrier policies also play a factor in your long-term care insurance cost, as each carrier offers different rates and benefits. Some have preferred health discounts and standard premiums while others charge sub-standard rates to people with preexisting or chronic medical conditions.
Insurance companies operating within certain states must submit their pricing and products for review by the Department of Insurance before offering services, as well as secure approval from them before initiating new premiums or increasing existing ones for open or closed blocks of business.