How to Buy Long Term Care Insurance

There are three options for people who are shopping for long term care quote and thinking about purchasing long term care insurance and they are: stand-alone long term care policy, fixed annuity with ltc benefits and policy with riders.

They are unique in their own way and the decision is left to the consumers, what kind of policy they think would perfectly suit their needs.

Stand-alone Long Term Care Policy

According to the nonprofit Insured Retirement Institute, there are four risks to a stand-alone LTC policy: They can be expensive, they acquire no cash value, the premiums may increase, and the underwriting can be time-consuming.

One of the biggest issues here is the long term care insurance costs. You may be able to afford paying for your premiums for a year or two but what about for the following years. It is important to think of the future and see if you can afford to finish paying for this and not simply give up on this once you’ve out of cash.

Experts say that it is ideal to have a smaller policy rather than be ambitious and opt for the expensive one but can’t finish paying for it.

Fixed Annuity with LTC Benefits

This option is actually more affordable than the traditional long term care policy and aside from that you are also entitled to other benefits. It gives you  access to your money but with nominal fee, the cost of the LTC rider may be less than an LTC policy, and you can obtain coverage without health underwriting if you’ve been turned down for a stand-alone policy. There are disadvantages too like the steep upfront investment, the rider fee can eat into your annuity’s interest income, and you’ll be locking that money up today at a relatively low rate.

LTC Insurance with Rider

LTC experts suggest that if your need for long-term care is relatively short, meaning a year or two, consider a hybrid life product. But if your need is likely to be longer, you’re going to blow through the policy and be back on your own savings. Then you’re going to regret that you didn’t buy a traditional long-term care policy.”

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Save On Long Term Care Insurance Premiums: Know The Chances

Although the number of insured individuals are still lower compared to those who still have to avail an LTC plan of their own, more Americans are still interested and are considering of getting one in the future. One proof of the increasing interest of the public is the numerous inquiries and questions about how they can save on long term care insurance premiums.

Now that majority of insurance companies offer online LTC assessment tools that can give immediate quotations to those who are interested in getting an LTC plan, the public are given more chances and time to consider their plan purchase.

By providing some important personal information that the insurance providers need to come up with the possible amount of their LTC plan, those who are interested in getting one may examine and analyze the result of their inquiry, therefore they can be more prepared and ready financially once they decide to finally avail their own LTC policy.

Other than this, an individual can always ask for his insurance agent’s advice and recommendations about the many possibilities of saving on high long term care insurance costs. He will be informed of the different considerations that insurance providers usually have in order to grant LTC policy cheaper prices and also give him suggestions and guide him on what type of insurance plan he can avail.

Unlike what many people believe, the rates and premiums of a particular LTC plan may still be cheaper than what they perceive it to be. They only has to know the different factors or aspects that can help them save on long term care insurance monthly premiums by remembering these basic details that insurance companies consider when obtaining how much an LTC policy would cost:

1. If it is possible, they should get or purchase their LTC plans at a younger age. Insurance companies generally give more affordable policy amount and higher levels of inflation protection if the person avails his plan immediately.

2. He must consider his preferred elimination period and benefit coverage period because these two factors directly affect and contribute to the price of a particular person’s LTC policy. Longer elimination or waiting period may mean cheaper monthly rates while longer or a lifetime-worth of LTC benefit coverage period may have more expensive rates. Whatever the person prefers, he must be ready to pay and shoulder any LTC expenses that he might personally shoulder.

3. Inquire about the rates of nursing homes and other adult day care facilities in the exact area where the individual opts to receive his plan’s benefits. He must keep in mind that the rates and amount of LTC plans vary depending on the state and location where he will use his benefits.

4. Know the most suitable type of LTC policy option for your LTC needs in order to maximize the advantages without spending too much money.

All of the above factors can help a person save on long term care insurance premiums. He may also contact his insurance provider for more important details and information that can further help him get affordable LTC policies.

How to Compare Long Term Care Quote

Shopping for long term care quote from major ltc carriers is easy but comparing long term care quotes is another story and it’s a bit complicated and hard. Here are some of the steps on how to make this task easy.

1. Familiarize yourself with the terms used

One thing that makes comparing quotes difficult a bit confusing is the terms used. For example, one carrier might call one of its inflation protection feature as 5% Equal and the other refer to it as 5% Simple. These two are just the same in terms of the services they provide and their only difference is their name.

2. Comparing your daily benefit amount

Just remember that the change in premium of your daily benefit amount either in an increasing or decreasing manner will always be linear. For example, the cost of a $200 benefit amount is 50% higher than that of a $150 daily benefit amount.

3. Check if your benefit period or pool of money is just the same

4. Study carefully if the features offered are the same.

5. It also pays to check other details like if your nursing home or home health expenses will be covered in full or just half of it.

 

How to Choose the Right Long Term Care Insurance for You

Choosing the right ltc insurance that would perfectly suit you is not as complicated as it seems. This is one of the reasons why people avoid the idea of purchasing one early. In most cases, it’s too late for them to apply for long term care coverage and thus exhausting their savings as well as their assets. In order to avoid this kind of inconvenience you can follow these simple steps on how you can choose the right policy for you:

 

  1. Get familiar with long term care policy, find out about the different types of policies such as Indemnity Long Term care Insurance, Reimbursement Long Term Care Insurance and Partnership Long Term Care Insurance. Gathering resources is the most important thing you should do.
  2. Decide the daily benefit amount you want to receive. Considering your age, current health status, family history and risk factors can help you come up with a decision much easier. Before making a decision, you should research for the cost of senior care facilities first. You should remember that companies can provide $50 to $250 daily. Choose the daily benefit amount that is enough to cover your needs and you can afford.
  3. Choosing the benefit period is also very important. This is commonly known as the period of time the company will pay for your long term care needs. Keep in mind that the benefit period is very dependent on the amount of assets you are protecting. To give you an idea, policyholders usually choose coverage for a lifetime or between 2 to 5 years.
  4. Pay attention to situations that would trigger your benefits. Find out first if the policy will require you to get hospitalized first within a certain number of days before you can get coverage for nursing home or home care.
  5. The policy should be guaranteed renewable. It means that the company has no right to cancel your policy for as long as you have paid your premiums on time. This is one of the important things you should look into when looking for long term care insurance.
  6. Look for a policy that can waive your premiums once you’ve started to receive your benefits.
  7. Make sure that your policy has inflation protection.  As you grow older your daily benefit amount increases as well. So even if the cost of care becomes more expensive you still get enough coverage from your policy.