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Long Term Care Insurance: Costs and Benefits


The very thought of long-term care can send shivers down most people’s spines. Whether it is the constantly increasing long term care costs, or even just the idea of being in an assisted living home, there is not much to look forward to when it comes to long term care.

With that said, the harsh reality is that more than sixty percent of people will, at one point in their life, need the assistance of long term care after turning sixty-five. Forty percent of those that currently receive long-term care are between the ages of eighteen and sixty-four. Because long term care costs are essentially inevitable for the average person, it is important that one evaluate long term care insurance rates, and consider the various ways and means that they can go about reducing their long term care insurance cost.

Long term care insurance premiums are on the rise, as insurance companies struggle to pay for the long term care costs of those living longer than expected. While long term care insurance premiums won’t increase by as much as insurance companies would like, most people with coverage can expect their long term care insurance cost to increase by as much as fifteen percent year-over-year. For those living on retirement, or a limited income, such increases in long term care insurance cost can be prohibiting. Fortunately, there are some very effective ways in which one can reduce their long term care insurance cost.

Shop Around

Perhaps the easiest and most effective way to cut your long term care insurance cost is to shop around the various providers. Before committing to any kind of long term care policy provider, it would be wise to check the long term care quotes of a variety of different companies. While the difference in the long term care insurance premiums won’t be overly significant, you will be able to reduce your long term care costs by shopping around and looking for better deals.

Plan Ahead

One of the best ways to reduce your long term care insurance cost is to plan ahead. Most people don’t think about long term care costs until they are older, and costs are higher. Planning ahead could involve researching family medical history, buying long term care insurance at a younger age, and also considering tax benefits involved with long term care insurance plans. By buying younger, you’ll be able to reduce your long term care insurance cost by paying premiums now and avoiding increases to long term care insurance rates that may take place in the future. While tax benefits won’t necessarily reduce your long term care insurance premiums, they may be able to help you get back more money from taxes and thus reduce your overall out of pocket costs. Lastly, it is possible to reduce your long term care insurance cost by knowing the medical history of your family. Provided there are no instances of Alzheimer’s or similar medical conditions in your family, you may not need to pay the long term care costs associated with a lifetime plan.


2 Responses to "Long Term Care Insurance: Costs and Benefits"
Kim Duff said...
This comment has been removed by a blog administrator.
Holly Murs said...

I agree with you, Seth. Long term care, both the costs and experience are scary and yet a lot of people still don't take time to sit down and jot down their long term care plans.
Aside from long term care costs, long term care insurance rates are also skyrocketing every year. Without careful planning, people may not be able to afford either one of them (and that would be a bad news).
In addition to what you have listed above on how they can reduce their ltc insurance costs, www.ltcoptions.com/long-term-care-insurance-costs/ mentioned that people can can modify the insurance package to get as much coverage as they can afford, for a higher premium, or to save as much as they can per year, for less coverage. They can buy as little or as much protection as they can afford – so they can get a policy that grants them long-term care coverage without breaking their budget.

Hope it helped! Thanks.


April 21, 2015 at 7:49 PM

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