Though the average cost of long term care may seem high, costs vary widely depending on what kind of assistance is required and where it’s delivered. Your costs also depend on family circumstances, current health status and any history of chronic or debilitating diseases in your family tree. Insurance costs tend to be far less expensive than paying out-of-pocket for care services.
Cost can differ widely by carrier, so it is wise to compare policies before making your choice. Find one with similar coverage parameters at comparable prices before looking into its premium increases over time; these could prove very costly in the end.
Purchase of long term care insurance early and healthy can help to keep the costs of premiums manageable. Bundling coverage with life insurance policies often decreases overall premium costs significantly.
Long term care policies typically come with a set benefit period and its length has an effect on premium costs. You have options such as zero, 30, 60, 90 180 or 365 day elimination periods to select from and this determines how much out of pocket expenses must be met before insurance begins to pay benefits; selecting shorter elimination periods will result in higher premium costs.
Some long term care policies offer inflation protection, which automatically adjusts benefits to meet rising healthcare costs. This feature can ensure your coverage keeps pace with rising expenses but will increase premiums accordingly.
There are other ways to help cover the expenses of long term care, including hybrid long term care/whole life insurance and shared cost arrangements. With hybrid policies, your heirs receive part of the death benefit should you never use any long term care benefits; shared cost arrangements offer another possible solution but usually have longer waiting periods before benefits kick in.
If you’re ready to explore your long-term care insurance options, use our free calculator below to estimate the cost of coverage. Or reach out directly and speak with one of our specialists who can tailor a quote specifically tailored for your circumstances. After we compare your options and help you select one that best meets your needs, we advise reviewing AM Best financial strength ratings, customer service reviews and National Association of Insurance Commissioners complaint indices of any companies that may interest you. These guides can help you identify insurers with poor performance or reputations and protect your financial security while getting maximum value from long term care insurance policies. It’s an important decision you shouldn’t rush into; having a plan in place long before need for care arises allows you to focus on what matters most – enjoying retirement!