Smart Ways to Save on Long Term Care Insurance
1. SHOP AROUND Premiums vary greatly in Long Term Care Insurance. We represent most of the major long term care carriers and we find differences of 10% to 50% in the premium charged for essentially the same policy benefits. Use an independent broker, who will represent you. Far too many agents work primarily for only one insurance company.
2. WEIGH BENEFITS AGAINST COST Far too often an agent will emphasize less important benefits, not in a competitor's policy, even though the competitor's premium is far less for the same major policy benefits. An agent may also allude to a "questionable" better claims record to overcome a much higher premium.
3. LONGER ELIMINATION PERIODS A 0 day elimination period makes the premium approximately 30% higher than a 90 day elimination period and a 30 day elimination period is approximately 15% higher. Most people can afford to pay the first 90 days, and Medicare, HMO's, and Supplements may cover all or part of these expenses. It works just like an auto insurance policy deductible...the larger the deductible the lower the premium will be.
4. LONGER BENEFIT PERIODS Cover the catastrophic need. Lifetime coverage is most desirable, since you will not outlive the benefits. Although it does not happen often, a long term care need can last for over 10 years. Over 21% of all nursing home stays exceed 5 years. Purchase at least 4 years of benefits so you and your family have enough time to plan your estate disposition. Any property you transfer within 3 years of a Medicaid Application is subject to possible reversal and criminal penalties.
5. AGE CHANGES Some insurance companies use your last birthday, while others use you closest birthday. Birthdays increase the premium anywhere from 4% to 10%+ depending on your attained age. By purchasing when you are younger and in good health you will always pay less premiums and your coverage will be assured for a longer period of time.
6. SPOUSAL-DOMESTIC PARTNER DISCOUNTS Most insurance companies offer a 10% discount for a husband and wife applying for coverage at the same time. A few insurance companies offer a 50% discount for a joint applicant. Any two individuals living together in the same household may qualify for this benefit.
7. SIMPLE INTEREST VS. COMPOUND INTEREST Anyone under 70 should give strong consideration to either a simple interest or a compound interest Cost of Living Adjustment (COLA) Rider. This will allow your benefits to keep pace with inflation. If you are approaching 70 and find the cost of the compound inflation rider prohibitive, consider the simple interest inflation rider, or purchase somewhat higher benefits than you need today without the inflation rider to compensate for future long term care costs.
8. SOMETHING IS BETTER THAN NOTHING If nursing home costs are currently $150.00 a day in your area, and you can only afford a $100.00 a day plan, go ahead. Right now you are self insuring 100% of the exposure. It is certainly better to have two thirds (66.7%) covered now than nothing at all. Don't procrastinate because of high premiums. Pick a premium level you can afford and purchase a Long Term Care Insurance plan based on your budget.
9. BIGGEST BENEFIT IS PEACE OF MIND Studies show that the most important reasons we purchase Long Term Care Insurance is to "protect our assets" and to "assure that we will not be dependent on others".
10.MWBoone & Associates may help you save money Contact us for a no obligation quote request. We represent top rated companies. Many people are healthy enough to qualify for Long Term Care Insurance today and you can find out without any obligation. For a quotation, contact us today with your questions about long term care.