LONG TERM CARE INSURANCE PREMIUMS
The typical response from those considering long-term care insurance is that it’s “too expensive.” Although long-term care insurance policies usually cost between $1,000 and $3,000 per year, having to pay for care out of pocket is more costly! There are a few ways you can save on long-term care insurance premiums without sacrificing too much.
1. Buy Young
Because premiums are age based, the younger you are, the less they will be. It’s that simple!
2. Look for Discounts
Many different types of discounts apply to long-term care insurance policies, which can help you save a lot on premiums if you qualify.
- Spousal or family discounts
- Preferred discounts
- Group discounts
- Employer discounts
3. Consider Co-Insurance
If you choose to co-insure part of the cost of your long-term care, you can significantly reduce your premiums. For example, if you lower your daily benefit by 30% and pay the rest out of pocket, you will be able to reduce your annual premium by that same amount.
4. Pay Premiums Annually
You can save approximately 8% a year by making an annual lump sum payment each year on your policy’s anniversary date. The carrier will send you a reminder each year so you don’t forget!
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