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.

Factors that Determine Premium Cost

Long Term Care Costs are determined by:

• age
• health
• marital status
• any benefits chosen
• discounts available to you

Discounts

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%

Tax Benefits

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.

Money-Saving Tips

• 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.