How to Pay for Long Term Care Insurance?

With the continual increase in long term care insurance premiums, most people tend to contemplate on whether or not they would acquire coverage. Most think about how their financial capacity can pay for a long term care policy.

If your income—may it be from your job or retirement—falls under at least the moderate category, you have what it takes to pay for long term care insurance. It’s important to remember that premiums are influenced by several factors, mostly by the amount of coverage that you intend to buy. Given this, you can modify your benefits to fit the amount of premiums that you are willing and capable to pay.

Employer-sponsored Plans

If you are still employed and feel like an individual policy costs too high for you, verify what your benefits are. Data from the U.S. Department of Health and Human Services show that 40% of employers offer a sort of long term care insurance, but only 2% of workers have took part in it. That’s why it’s best to verify what your benefits are as an employee as long term care coverage could be included in your perks.

This kind of group plan usually comes at a discounted rate and that could work to your advantage. Typically, you can qualify regardless of your health condition because this type of plan is not inclusive of underwriting. Furthermore, benefits can also be extended to your loved ones such as your spouse or elderly parents.

However, it’s crucial that you closely study your claims as benefits in this kind of policy can be limited as opposed to an individual policy. The range of services may not include in-home care and communities. Furthermore, inflation protection can also be limited or not offered at all.

Usually, you can still keep the policy should you decide to be no longer part of the company. All you need to do is to continually pay for the premiums.

Discipline, commitment and financial capability are the keys to paying for long term care insurance. On the other hand, it can also be about tapping certain benefits that you are entitled to because of your profession.