Long term care insurance can save you a lot of money as you get older and more likely to need assistance with everyday tasks. However, if you are concerned about the cost of the premium, there are some ways to reduce costs and still reap benefits from your policy.
Shorten Your Benefit Period
Rather than selecting a lifetime policy, consider a shorter term, like 5 years or 10 years, if you have a chronic disease in your family history. Research shows that only 8 percent of people needed more than 3 years of long term care coverage.1
Buy Your Policy Early
Similarly to life insurance, premiums increase as you get older. By purchasing your plan when you are younger, you can avoid the highest premiums. Keep in mind that premiums can still increase however.
Consider Shared Care
If you’re married, you have the option of a shared care policy. With shared care, you and your spouse share the total amount of year’s coverage of the combination of your two policies. This means that if you both have 5 years of coverage, if your spouse uses 2, you will have 8 years of coverage that you can use. While a shared care policy is more expensive, you can save by shortening your benefit periods, since you can combine coverage.
Reduce Daily Payout
You can elect to choose a reduced daily benefit and plan to pay a portion of your care out of your own pocket. Given you have the savings to back up that plan, you can reduce your premium by reducing the daily benefit.
Lengthen your Elimination Period
The elimination period is 30-90 days in which you will need to pay for your long term care out of pocket before your policy kicks in. By electing for a longer elimination period, you can lower your premium. Just remember, you will have to be able to pay for care throughout that time.
For Long Term Care options call Ali at AmeriAgency at 615-603-3840.