Simple Ways To Cut Your Long-term Care Insurance Premiums
Long term care insurance is a serious investment that entails time and planning. Premiums may be costly, but it is more practical to purchase LTC insurance than resort to paying out-of-pocket expenses. Good news is you can get discounts and save from premiums in these easy steps:
Good Health Equates to Great Savings
If you have good health history, you can expect for less premiums on your long term care insurance. Insurance companies typically deduct 10 percent on a person with untarnished medical records. The discount is locked in, meaning the discount remains the same despite of the change in your health condition. This is beneficial, though, since your health changes as you age.
The American Association for Long Term Care Insurance conducted a study in 2008 and found out that younger applicants qualify for health discounts. It's pretty obvious that the younger you are (probably in your 50s), the greater benefits you'll receive.
Insurance companies offer discounts to married and cohabitating couples. Married couples may save from 15% to 40% per year, but the discounts really vary on the private insurer and both individuals should purchase a policy first before qualifying for discounts.
Meanwhile, some companies may still offer discounts even if only one couple buys the policy, but, oftentimes, the one who purchases the coverage is insurable. Some companies give discounts to domestic partners or individuals in committed relationships.
Longer Elimination Period
The longer the elimination period means the lower annual premiums will be. Normally, you will need less long-term care during the first period or months, and the costs are far better than prices of the care you'll be receiving in the next few months or years. During those initial time periods, you may ask help from a family member or community to keep up those needs, Most people can afford the first three months or 90 days, and Medicare or HMO's may pay all or a portion of these expenses. If you opt for longer deductibles, your premiums will lower significantly.
Buy LTC Policy Early
The benefits of premiums depend largely on the age of the policyholder. Also, the premiums increase as you age; so the earlier you buy a long term care policy means the lower your cumulative insurance premiums will be.
Many people are hesitant to buy LTC early because they thought they would need it in their late 70s or 80s. They tend to lose the benefits waiting for them because they let the oppotunity passed on. It's important take advantage of your younger age to buy a policy and enjoy the awaiting benefits.
If your company offers long term care insurance, you may qualify for discounts as yo get included in the group coverage. Always ask your employer/company about the long term care insurance coverage, However, be wary that group policies may have less benefits or non-standard qualification critera. So, it's still better to purchase your personal LTC insurance policy.
However, if you are an executive or business owner, you may provide long term care insurance to employees, with given benefits on your part. The so-called "exceutive carve-out" policies are similar to individual policies, but these policies have 10% to 15% discounts with lenient underwriting requirements.
by: Christine Walker