subject: Reducing Long Term Care Insurance Premiums [print this page] Many acknowledge the importance of planning for long term care but some of their options, such as long term care insurance (LTCI), would require them to allot a big amount of their hard earned money each year for the annual premiums. Here below find out how you can save on long term care insurance premiums without compromising your benefits.
As one goes past the age of 50 he faces a greater risk of paying higher LTCI premiums. It is for this very reason that everybody is advised to purchase a policy at a younger age. Most people, however, do not have the money to afford an LTCI policy and have to wait a little longer till their nest egg gets more secured before they can finally buy.
Unfortunately, its the waiting part that subjects an individual to expensive LTCI policies. Insurance companies are strict with their rules and regulations because even a minor slip can cost them in claims.
Now there are many senior citizens over 60 years old and still in the workforce who tried to clinch an individual policy despite their inkling that they will not get any companys approval. True enough, some of them were declined while others were required to pay a higher premium.
Instead of going for the high premium, these senior folks opted for the group LTCI policies that were made available to them by their employers. According to them, if not for this type of coverage there is no way that they couldve managed to come up with a decent plan for their future as most of them either have pre-existing conditions already or have started to manifest symptoms of a health disorder.
Had they opted for an individual LTCI policy, the will be forced to shell out $4,000 to $7,000 for the annual premium. Now thanks to their group policies they only have to pay a little over $2,000 yearly.
Other Ways to Save on Long Term Care Insurance
Choosing the type of LTCI policy to buy is only way to save on annual premiums. Another factor that will determine the price of your policy is the benefit period because it determines the specific length of time that you will receive insurance coverage.
According to LTC experts, most people will require three years of care but theres also a big population out there that will require a longer time. It is ideal to have a longer benefit period but this will take a lot of money.
Using eeny, meeny, miny, moe will not help you arrive at a good decision for your benefit period which can only be determined by two factors your health condition and your budget.
If you take time to consult a licensed LTCI agent he will advise you to go to your physician so that you can have your present health condition checked and your familys health history, as well. Some illnesses require five to 10 years of care while others a shorter period of time. By identifying accurately your future health care requirements you will be able to determine how long you will need LTCI coverage.
There are many other ways to save on long term care insurance so contact your LTCI representative today and learn about all these.
by: Roberta Mejia
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