Long Term Care Insurance protects your income and assets in the event you’re injured, ill, or cognitively impaired. But is there such a thing as affordable Long Term Care Insurance (LTCI)?
LTCI may not be the best fit for everyone. But if you have assets to protect and income to pay for it, affordable Long Term Care Insurance options are available.
LTCI policies can be customized to fit your needs and your budget. By adjusting the plan features and accessing discounts, you can protect yourself from the financial risk of long term care while keeping coverage affordable.
Policy Features Can Be Customized to Fit Your Needs and Budget
LTCI policies aren’t one-size-fits-all. Because these policies can be complex, it’s best to work with a Long Term Care Specialist.
At LTC Consumer, our Long Term Care Specialists focus solely on long term care planning solutions and have access to plans from the top Long Term Care Insurance carriers. They shop the market for you to find the best deal for your age, state, gender, and plan needs.
By adjusting the policy features and options below, you can find an affordable long term care plan to fit your budget.
The monthly or daily benefit determines how much you have access to each day or each month for care. If you choose a $150 daily benefit, you have access to $150 for each day you need care. If one day your care totals $170, you’re responsible for paying any amount above the daily benefit limit.
If you select a $3,000 monthly benefit, you receive a maximum allowance of $3,000 each month no matter how much you spend per day. Monthly benefits can offer greater flexibility and may come standard in some LTCI policies.
How long would you like your benefits to last? The duration in years is multiplied by your daily or monthly benefit to determine your pool of money. Example: $3,000 monthly benefit for 5 years = $180,000 pool of money.
The higher duration, the more expensive your policy could be. If you’re looking for an affordable long term care insurance policy, you may choose a lower monthly or daily benefit and duration to cover a portion of your risk.
Inflation protection is an important policy feature because it helps grow your pool of money. Many insurance carriers moved away from expensive 5% compound inflation to more affordable 3% and 4% compound or tailored inflation options.
Guaranteed Purpose Option (GPO) inflation can make your premiums more affordable to start. However, gradual benefit increases are determined by you and can raise your premiums at the time of increase.
Finding the best discounts can help keep your LTCI premiums affordable. Applying with your spouse can earn you up to a 30% discount and having Preferred health could save you an additional 15%.
If you buy through your employer plan, you may have access to group rates or discounts and underwriting concessions.
Paying your premium annually can save you some additional money, sometimes up to 9% (depending on the carrier you apply with).
Ready to find an affordable Long Term Care Insurance plan? Use our online LTC quoting tool and speak with a LTC Specialist to customize a plan just for you.
LTC Consumer is an independent, free online service to help consumers understand what long term care insurance is, how it works, and how to evaluate coverage options. Our mission is to provide an educational, no-pressure resource for learning about long term care planning, with the opportunity to speak with specialists who can help them.