No matter how important it is, long term care insurance is one product which most people would avoid because of its expensive price tag. What they do not see are the many different ways on how to save on long term care insurance because they are too busy cropping long term care (LTC) planning from their responsibilities.
By deliberately ignoring the need to plan for LTC, they risk losing everything which they’ve worked so hard to obtain. LTC costs will continue to rise in the years to come and, in fact, by 2030 people will have to pay for the unthinkable as the figures are expected to quadruple.
Imagine a home health aide charging $76 per hour or $608 daily to assist you during mealtimes, in bathing, dressing, toileting, continence, and in transferring from the room to any point of the house or vice versa. That’s not all as rates of community-based LTC facilities and nursing homes will shoot up, as well.
What is your take on paying $386,900 annually for a nursing home’s private room? Right now the rate is still $96,725 but when LTC costs start to increase fourfold, this five-digit number will just be a faint memory and we all have to deal with six-digit rates.
Twenty years down the road, one’s retirement money worth $500,000 will not take him very far in terms of LTC. He may be able to afford the first year in a nursing home but after that, he’ll inevitably turn to Medicaid because he will run short of funds.
Unfortunately, Medicaid does not take in anyone who is not so poor and cannot afford to buy his own food other basic necessities. If you want a room in this health insurance program you have to spend down your assets until it meets Medicaid’s asset limit requirement.
Learning How to Save on Long Term Care Insurance
Medicaid us not worth considering at the moment unless you are going to purchase a Partnership qualified LTCI policy as this can protect your assets from being spent down should you require Medicaid in the future.
Start shopping for long term care quote in various LTCI carriers and preferably with a licensed agent in tow as he would be able to help you get the ideal coverage.
Give more attention to the inflation protection rider of your policy than the maximum benefit amount because if you instantly go for a high maximum daily benefit amount you’ll need to pay a high premium. While a compound inflation protection will increase your policy’s benefit amount over time. If you buy your policy at the age of 40, by the time you reach the age of 54 or 60 the total amount of your benefits will be twice its initial amount.
Opt for a longer elimination period such as 180 days especially if you are not at risk of nursing home care. By doing so, you will manage to stretch your benefits and benefit period.
Finally, if you really want to know how to save on long term care insurance just monitor LTC costs in your area because knowing how much you’ll need for care will make planning easier.
Even if CLASS act has been cancelled, there are still alternative ways on how you can cut the cost of your premiums. Everything I’ve said beforehand will surely get you the kind of long term care plans you want without having to worry about your budget. Consider these things and you’re off to a comfortable and debt-free future.