Long Term Care Insurance may look
expensive, but it isn’t nearly as expensive as the
actual cost of long-term care. One year’s cost of
Long Term Care Insurance premiums is still less than one
month of Long Term Care. Also, you can determine how much
premiums cost by what benefits you choose.
Long Term Care Costs are determined by:
- age
- health
- marital status
- any benefits chosen
- discounts available to you
Discounts on premiums are available if you are buying as
a married couple or in excellent health. With these discounts
you may be able to cut premiums by up to 30%
The Federal government has recently passed legislation
to provide tax incentives for long-term care insurance polices
issued on and after Jan. 1, 1997. A portion of a long-term
care insurance premium based on the age of the policyholder
now counts as a medical expense. For older people that have
enough medical expenses to gain tax deductions, this provision
may make it worthwhile to itemize.
- When looking at plans and carriers, remember that buying
cheap isn’t necessarily going to save you money
in the long run. If your carrier charges considerably
less, it may be a sign of future premium increases.
- If it is close to your birthday, make sure you apply
for your plan before your birthday. Most companies will
consider your age at the time of your application.
- Purchase long-term care insurance when you are younger
and in better health to drastically decrease premiums
- Do not try to save on premiums by waiting. As the cost
of Long Term Care increases and as you get older your
premiums will only increase.
