7 Tips on How to Save Up on Long Term Care Insurance Costs
Shopping for long term care insurance can be intimidating, once you consider the costs involved. But don’t let long-term care insurance costs frustrate you – here are a few pointers to help you save up and eventually purchase the LTCI that will best fit your life.
Did you know that the younger you purchase your LTCI, the cheaper the premium you’ll be paying? Long term care insurance costs rise as the policy owner ages, so shopping for a plan early is a good and practical way to invest for an LTCI. As a side note, purchasing early can lead to other benefits for an owner, such as practicing budgeting skills, awareness of other insurance programs, and generally being more responsible (as a result from planning for the future).
To give you an even clearer picture, the average age of buyers of LTCI plans is at the ages of 57-60. With those ages, medical conditions factor in, that can result in higher premiums. The worst case scenario would be to the medical condition often attached to that age group – some plans may consider potential buyers ineligible, just because the shopper’s condition is considered as a red flag for claims.
Know Your Policy
In relation to the point above, it would be good to know the different benefits your long term care insurance premiums cover. Make sure to look for a plan that will best fit your circumstances. You can do this by first making a list of expectations you want from a long term care insurance plan. Next, figure out the essential needs and then pattern it to your first list of wants. After you’ve indexed the needs and wants, you can now then look for the type of premiums offered and check if it will best match with your list.
Some choice factors to consider in knowing your policy are the following:
– the type of care services offered, whether these may be nursing home care, home health care, facility expenses, caregiver fees, maintenance medications, etc.
– check the maximum daily benefit amount you’ll be getting from the long term care insurance. Find out if it will best fit your want and needs, to see if you’re paying for the proper services you need.
– find out as well how long your coverage will last. This way, you’ll be able to gauge if you can manage a shorter benefit period (typically a period of 3-5 years) or a lifetime coverage (important if you have a family history of Alzheimer’s or dementia, or if you find yourself manage immobilized).
By identifying your circumstances and matching it with the long term care insurance plan that you’ll be purchasing will allow you to get your money’s worth. Remember: consider your needs and wants and then find an LTCI plan that will best complement your lifestyle.
Go for Multiple Quotes
You aren’t limited to just one LTCI agency or agent. Get multiple quotes from different LTC insurance companies to compare coverage and prices. Doing this will allow you to get a bigger picture of the different policies offered in the market, for you to find the best (cost-wise and benefits-wise) that would match your circumstances.
Check for Tax Write-Offs
A nice way to minimize long term care insurance costs is to find out if the policy is possible for tax deductions. This is often done if the policy holder owns a business, or has high health care costs to deal with. The best suggestion to have LTCI tax write-offs is to go consult with your tax advisor.
Be Wary of Inflation
Although inflation coverage is an option that is often offered for LTCI plans, it would be for the best to always go check with LTCI agents on how it will work for the policy you are purchasing. Inflation coverage may increase the costs needed for your policy, so make sure to also consider if this option will fit your budget.
Shared Care Policy
Long term care insurance agencies can offer discounts to married couples and domestic partners purchasing a policy. This is a cost-effective and motivating way for loved ones to purchase a plan. Additionally, most LTCI agencies also offer partial discounts, even if only one of the partners was approved.
Lastly, the best way to save up on your long term care insurance cost is to motivate yourself on the benefits you’ll be getting. Visualize the rewards that you’ll have once you can start claiming your policy. Think about how you can also help your loved ones and that you will not be a burden for them. Having the right mindset will allow you to set aside the cash needed for the LTCI. It may also improve your saving habits – it’s always a good thing to have some extra cash, right?
Saving up hard-earned funds to cover long term care insurance costs is possible. Have this guide handy, in case you need to remind yourself of your LTCI goals.