For most people these days, saving money has to be the main priority. If you’re looking again at your budget to try to work out ways in which you can reduce your costs, you may be wondering whether you really need all those insurance policies. Especially long term care insurance… Do you need it? Maybe you can save money on long term care insurance?
Is It Possible to Save Money on Long Term Care Insurance?
Some types of insurance policies may not be absolutely essential however, there are others which you should certainly not skimp on. One of those is long-term care insurance – especially if you’re approaching retirement.
Long-Term Care Cover – What Do I Need To Know?
So, what is long-term care insurance? Long-term care insurance helps to cover the cost of ongoing long-term healthcare needs in your old age should it be necessary. The cost of paying for in-home care, assisted living facilities or a nursing home can be significant. And, for those who cannot afford it or those who don’t want to spend their life-savings, investing in insurance coverage is the best solution.
With this in mind, here is some expert advice to point you in the right direction of how to save money on your long-term care coverage.
1) Purchase As Early As You Can
When you’re purchasing a long-term care policy, it’s important to choose the right time to buy. Experts believe the best time for purchasing your policy is when you’re aged between 55 and 60. This is because at that age you’ll typically be healthy enough to be offered a lower premium.
When you bear in mind that the American Association for Long Term Care Insurance reports the cost of a long-term care policy for someone aged 65 years could be over twice that of 5 the premium offered to a 55 year old, it’s easy to see why purchasing sooner rather than later is a good idea.
2) Apply With Your Partner Or Spouse
Many long-term care insurance providers offer discounts to married couples or domestic partners who live together. With savings of up to 30%, it’s well worth looking into this option. Definitely a good way to save money on long term care insurance.
3) Sharing A Policy
Sharing an insurance policy with your spouse could be a good way to save money. Shared policies allow for the benefits to be combined, essentially doubling the amount of potential coverage each partner can enjoy with no need to invest in more individual coverage. For couples who have a large age difference between them, this is an especially beneficial course of action.
Have an older spouse? This option could help you save money on long term care insurance. You never know!!
4) Choose Your Benefits Sensibly
Timing is everything. Check out these options when it comes to the timing of your benefits policy:
- If you have sufficient funds to pay for several months of care for yourself, you might want to consider increasing the waiting period before the policy pays out in return for lower premiums.
- If you’re able to cover some costs yourself, you may be able to reduce the daily maximum benefit payable on your policy too.
- One further option is to review the inflation protection which is provided by your policy. If you have sufficient income or savings to cover cost increases, you may be able to eliminate inflation protection from the policy and reduce your premiums accordingly.
5) Think Ahead
You should start planning for your retirement as early as possible. Since the cost of long-term care can vary considerably between different parts of the country, you’ll need to bear this in mind when choosing a policy. Will you be relocating or staying in your existing area? Factoring in the cost of care is important so that you can ensure you have appropriate coverage for your needs.
Save Money on Long Term Care Insurance? Absolutely.
Taking these expert tips on board, you’ll find that you may be able to slash the costs of your long-term care policy and still benefit from suitable coverage. Take you time, do your due-diligence, and save money on long term care insurance!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.