Money Savings Advice When Purchasing Long Term Care Insurance

 1. SHOP AROUND: Premiums vary greatly from company to company so be sure to get quotes from at least 3 different carriers. At  LTC Tree we represent most all the major Long Term Care Insurance companies and we find differences of 15% to 65% in the premium for basically the same policy from company to company.  It is imperative that you work with a broker who works for all the companies so you will get objective advice.

2. WEIGH BENEFITS AGAINST PRICE: Before you commit to a long term care insurance company make sure you take the time to find out what long term care insurance policy features and benefits are most important to you. 

3. LONGER ELIMINATION PERIODS:This is your policy's deductible and the longer the elimination period on your long term care insurance policy the lower the premium will be.  Consider taking a longer period to keep your premiums down.  The most economical deductible is the 90 day elimination period which typically is a good balance between too long and too short. 

4. SPOUSAL and DOMESTIC PARTNER DISCOUNTS: Most insurance companies offer a discount for a husband and wife applying for coverage at the same time. A few long term care insurance companies will offer discounts for gay and lesbian couples as well.  More info on spousal discounts and other tip can be found here in this blog article. 

5. COMPOUND INTEREST vs. SIMPLE INTEREST: Any person applying under 74 should give strong consideration to either a simple interest or a compound interest inflation protection riders or (Cost of Living Adjustment (COLA) Rider). This rider keeps your benefits in pace with inflation as you age. If you are approaching 74 and find the cost of the compound inflation rider too expensive, consider the simple interest inflation rider.  Keep in mind that the cost of health care generally rises faster than overall inflation.

6. SOME BENEFITS ARE BETTER THAN NOTHING: If long term care costs are currently $170 a day in your area and you can afford a plan that will cover 100% of the cost that is the amount of coverage you should buy.  However, if you can only afford a plan that pays $120 per day having that amount is better than having no plan at all.  The plan will pick up the majority of the cost and that will take your risk exposure down.

7. BIGGEST BENEFIT IN LONG TERM CARE INSURANCE IS PEACE OF MIND: Once you have your long term care insurance in place it will be just one less thing you have to worry about when your head hits the pillow at night.

Taking your time when buying long term care insurance can save you hundreds if not thousands of dollars so be sure to do your home work before purchasing.  Check with your State's Insurance Department to see if you live in a Long Term Care Partnership State?