Long term care insurance is very intimidating which often makes people like myself assume that it will cost a fortune just to afford this type of insurance. How much does it really cost?
The price actually depends on your needs. You are free to structure your premiums and if you want to find cheap long term care quote then you need to consider some factors first like your age, state of your health, location, riders, elimination period and as well as the amount of your benefit and the duration.
Let’s go over the age first. Obviously, the younger you apply for this policy the lower your premiums will be. You’re not much of a problem for insurance companies because you’re still young, in perfect health and your chances of receiving long term care services is very slim unless of course you have a pre-existing condition.
Having a serious medical condition at the time you’re applying for insurance can affect your premiums. As stating the obvious, if you have a major health condition then you’ll definitely have higher premiums compared to a person who is in perfect shape.
Another factor that most people aren’t really aware is that your location can also affect your rates. The cost of long term care in Florida is not the same as when you’re living in New York. As for the latter state, it offers higher premiums compared to when you’re living in Florida. It’s not only the cost that is affected but as well as the benefits you’re going to receive later on.
It’s kind of annoying to pay for something for a very long time because you want to just get over it and live a debt-free live. But do you know that the longer you pay the insurance benefits before they start to provide you with benefits can actually save you a lot? Now you know and I hope you’ll consider that.
If you opt for high benefits and pay this in a long duration of time, then you have to expect for a much higher premium. It’s pretty obvious because you’ve signed up for a huge benefit amount and in return you’ll pay the company in a much longer duration of payments.
There are also other things you can add on to your policy like riders. When you shop for quotes you’ll notice that there are other features and benefits included. But before you say yes to all of that you need to understand that you don’t need everything that these companies are offering. You can add an inflation protection rider if you want but make sure you’ll chose the one that can greatly benefit you in the future and can cover all your long term care needs.
These things don’t matter for some but they are very important. These things can give you an idea how much you’ll spend for your long term care. So even if CLASS Act did not push through you still have an alternative, shopping for quotes and applying for long term care insurance early.