How to Minimize Long-Term Care Premiums
Having a long term care insurance policy will help an individual prepare himself for his future medical needs. A long term care policy, when acquired at a younger age, will give the plan holder more consumer protection and benefit in the long run. An individual who has interest in acquiring long term care insurance may also check with their local Department of Insurance for information about the partnership programs that some of the states offer. This long term care insurance partnership program let you qualify for Medicaid without having to spend all of your assets, and oftentimes have a Dollar-for-Dollar advantage.
For those people who have family history of long-lasting conditions, such as Alzheimers disease, may consider having a long term care plan at a young age to take advantage of its consumer inflation protection, and buy a policy with at least three years of coverage. For policies that were acquired at age 61 and below, an automatic compound inflation protection of at least 5% assures an increase in benefit of not less than the yearly percentage change in the Consumer Price Index (CPI).
According to the National Clearinghouse for Long-Term Care Information, there are at least 70 percent of persons aged 65 and above who need long term care services at some point in their lives. But health services such as Medicare and private health insurance wont cover all of the long term care services that these people might need. This is where planning for the long term care insurance that suits your medical and personal needs come in.
If the interested individual is married, he can acquire a shared-benefit policy for himself and his better-half. The couple may buy a three-year benefit period each, but any one of them may use the others benefit period if one of them needs a longer long term care coverage. Say for example, the husband needs four years of coverage period, he may use his wifes one year benefit coverage, leaving her with 2 more years of coverage.
Some people tend to buy policies that have longer benefit periods with leaner premiums, but may cost you even more when you finally get to use it. If you acquire a policy with six-year coverage and with a daily benefit of $100, youll have to pay an extra $50 every day because the policy wont cover or pay out more than $100 for every day of your coverage.
On the other hand, a policy coverage of three years, with a daily benefit of $200 per day, may likely cost you less since you dont have to pay additional cost. You wont use more than $200 a day for long term care services. And one more advantage of a short and fat policy is that if you use less of your daily benefit amount, you can still extend your coverage after your initial three-year coverage period.
The American Association for Long-Term Care Insurance found out that almost 92% of policyholders who bought three-year benefit coverage do not fully exhaust their benefits.
Annika Myers is a professional writer of LTC Global for http://www.completelongtermcare.com – A resource website where you can find everything you need to know about Long Term Care insurance including great articles and resources on costs, care, facilities, quotes and much more.