Long term care insurance provides coverage for nursing home stays, assisted living expenses, memory care and other forms of home or community-based assistance. The costs can vary significantly based on factors like state of residency, age/gender considerations and policy type/option choices.
Most experts recommend purchasing long-term care (LTC) policies by age 55-61 in order to take advantage of more reasonable premiums, according to the American Association for Long Term Care Insurance.
Premium payments for LTC policies may be made monthly, quarterly, semiannually or annually; with some insurers offering different variations such as 5-pay — which allows policyholders to fully pay off the policy in five equal annual installments — or single-pay which offers one lump sum payment. You can also choose how long of an initial policy period it covers which may alter premium costs accordingly.
Many companies underwrite LTC insurance in much the same way as traditional health plans, requiring medical exams and information gathering from prospective policyholders in order to ascertain eligibility and premium costs can vary significantly between providers – making comparison shopping essential when looking for LTC policies.
Price of long-term care policies will depend on several factors, including your chosen amount, length of benefit period and whether an elimination period applies. Elimination periods reduce exposure to financial loss by forcing out-of-pocket payment before benefits begin being received through your policy; conversely, choosing to cover more years can drive up premiums significantly.
Location can also have an effect on the cost of long-term care insurance policies; some states provide more favorable rates. Furthermore, gender plays an influential role; women typically pay higher premiums due to longer life expectancies and greater chances of needing LTC services.
Cost of long-term care policies will depend on your unique circumstances and needs, so it’s best to seek assistance from an experienced professional in selecting one that meets them. By considering all the available policies within your budget and options available to you, it will enable you to better meet any future costs associated with long-term care services.
To gain more insight into long-term care insurance, reach out to an agent of your choosing. They can assist in selecting a policy tailored specifically to your unique needs and budget, and will guide you through the underwriting process to ensure coverage is provided for.
Note: The above pricing data was provided by AALTCI and represents sample pricing for linked benefit policies. Individual stand-alone LTC policy prices will vary by company; individuals with “preferred” health status may qualify for discounted premiums. To see rates from individual providers, visit the Linked Benefit Policy Pricing Index on AALTCI website.