- Work with a Specialist in Long Term Care Insurance (LTCI) who represents multiple carriers. A true specialist will work with 10-20 clients a month on just long term care planning. They can do the shopping for you to make sure you get the best policy for the lowest cost.
- If you are a couple, buy a policy with Shared Care. Shared Care allows a couple to combine their benefits for both or one to use. For example, if each person has a $150,000 benefit, which means as a couple they have access to $300,000 of benefits. If only one spouse needs care, that means they have access to the full amount.
- Buy a policy with higher monthly benefits but a shorter duration. Many people look at policies that last 4-6 years. While these policies are great, they can be expensive. Currently the average claim length is 2.8 years. Buying a policy with higher monthly benefit but just for 1-2 years allows you to save money now. This gives you time to financially prepare in the case that your claim does last longer than your coverage.
- Look for employer or association discounts. A number of employers offer voluntary LTCI and it is a great way to get a lower rate, especially for women. Employer plans are unisex pricing, while individual plans are gender-based. Buying through the employer for women could save them 20-30%, or even more than what they could buy on their own.
- Buy with your spouse\partner. Often time’s one partner is more motivated to buy LTCI than the other. Insurance carriers give a 20-30% discount when both people purchase together. If your partner wants a richer benefit, then you could buy a smaller benefit on the other partner to maximize savings. In some cases, the additional policy will be largely paid for just in the discount given for spouses.
The best advice is to do your homework and speak with a specialist who can help you. Our team of specialists are some of the best planners in the United States and helped thousands of people last year with their long term care planning. Whether you work with us or not, make sure you use these tips to maximize your benefit and lower your cost.
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.