Savings From Paying Long-Term Care Insurance Premiums

Long term care insurance is catching up in today's world with the rising cost of healthcare facilities and also because more and more people are becoming aware of its long-term benefits. Although the premiums may be a bit costly, there are smart ways in which you can save from paying the premiums and also get a good discount if you are seriously planning to purchase this cover for your future well-being and financial security. Let us consider some of the strategic ways in which you can do so.

A healthy body saves premium

It has been observed that if you enjoy a good health and have a good medical record, the premiums you have to pay on your long term care insurance cover are much lower. For those who enjoy absolute sound health history, the insurers generally deduct 8-10% from the premium. They also get a good discount in your premium on buying the policy. Later, this discount will remain constant even if the person ages or due to some diseases needs extended care. The best time to buy a cover is when you are nearing your fifties, because till that age not many people suffer from chronic diseases or require long-term care.

Discount for spouse

Insurance companies selling long-term care insurance offer concessions to married couples. This is a huge benefit in a family opting for such covers. The discount enables the couple to save anywhere between 20% and 40% (depending on their policy) every year. However, to qualify for the concession, the couple is expected to buy separate covers. In some cases, discount is offered even if one of the couples opts for a cover. However this may become a problem in the event of the death of the spouse who holds the policy.

Longer Elimination Period

When your elimination period is longer, it means that the policy offers a lower premium. Initially, you would require less of extended care. The need generally increases with age and disablement. So during the early months, you should use the cover as less as possible. This will automatically reduce your long-term care premium. During such times, you should try and exhaust your other policies such as Medicaid and other health benefits and keep long-term care insurance as your last healthcare option. Opting for longer deductibles would again lower your premium rates to a considerable extent.

Buy long-term care policies earlier

The premium rates vary a lot according to the age of the policy holder. So if a person is above 60 years of age, and is diagnosed with some health problems, he has to pay a much higher premium than those who buy a long-term care insurance cover early in life. It is normally advised that the ideal time to go for this policy is when the person is 50 years of age. At this age he is expected to save a lot on the cumulative insurance premiums.

Executive discounts