Just like buying a car, there are many features and conditions that go into pricing your unique situation. You have to choose which policy will best fit your situation. We suggest contacting an LTC Insurance Specialist to get the best estimate.
The two main conditions on initial pricing are:
- Elimination Period (the waiting period before the policy pays out)
- Benefit Pool (total benefits available to use)
In this case, here is an average policy for an Oregon resident with no inflation and a 90-day elimination period.
- $1,500 Monthly Benefit
- $36,000 Benefit Pool
- $30/ Month Price
- $5,000 Monthly Benefit
- $180,000 Benefit Pool
- $130/ Month Price
- $10,000 Monthly Benefit
- $600,000 Benefit Pool
- $350/ Month Price
The younger you are, the less you pay. Our average buyer’s age is 56 today and getting younger each year. We suggest buying LTCI before you hit 60.
Deductible & Duration
You can significantly change the cost of the policy by adjusting the duration of your benefits. To maximize the benefit for your cost, consider a short 1-2 year policy with pretty high benefits. We call this short and rich.
Most carriers look back over the past 3-5 years of your medical history. Just like an auto insurance company would never cover an accident after it happens, long term care insurance carriers will not cover those who have had a significant change in their health status.
Carrier & State
A 50-year old single woman could pay as little as $1,500 per year in one state with one carrier, and up to $3,000 per year for the identical coverage in another state with a different carrier.
Couples get a break over singles by up to 30% if they both buy a policy. When it comes to gender, in general terms, men do not live as long as women and women currently make up the majority of those on claim.
Inflation protection could increase the cost of the policy by anywhere from 25-40% depending on which type of inflation protection you get. Inflation helps your policy grow over the years.
Pooled benefits could provide more flexibility and cost savings by allowing you to join two or more people under the same policy.
Waiver of Premium
Some policies let you waive your premium once you make the first benefit payment.
Premium refund could return some of your premium depending on policy payouts and other conditions.
Above cost estimate is based on single rates in the state of Oregon. “Good” is based on $1,500 monthly benefit, 2 years, $36,000 benefit pool, 90 day elimination period and no inflation. “Better” is based on $5,000 monthly benefit, 3 years, $180,000 benefit pool, 90 day elimination period and no inflation. “Best” is based on $10,000 monthly benefit, 5 years, $600,000 benefit pool, 90 day elimination period and no inflation.
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LTC Consumer understands the importance of long term care planning for your family’s financial future. Part of our mission is to do the right thing for consumers regardless of whether or not that results in the sale of insurance. When you click “Submit” your information will be sent to one of our dedicated Insurance Specialists to help you. They are there to help however they can by answering questions and providing more information. Our Insurance Specialists only work with Long Term Care products and you will not receive unsolicited calls or emails from any other agent or company. Your privacy and security is important to us and we do not sell your information to any outside third parties.