Buying a Long-Term Care Insurance Policy
Long-term care insurance is not just an insurance policy to cover nursing home care (learn more about Home Care Nurses Sydney), it will help provide care for you in the event of a prolonged illness. However, the price for long-term care insurance has been on the rise and is now getting out of reach for many people. In this article, we will go over 7 tips for buying a long-term care insurance policy that will help you to reduce the price and make it more affordable for you
1. Assess Your Risk
Before you start to look at buying a long-term care insurance policy you will need to assess what type of risk you are trying to cover. You will need to consider your health, hereditary conditions, the life expectancy in your family, availability of family caregivers, and your personal preferences regarding care. These factors will determine how likely you are to need care, how long you will need it for, and the level of care you will require. For example, if you want to stay home with a family caregiver and have occasional help from a home health aide you can get away with a much smaller policy than if you think you will need 24/7 professional care.
2. Cut the Cost
There are several different ways you can adjust your policy to help reduce your costs. First, you can adjust your elimination period. Your elimination period is the amount of time you must wait from the onset of your sickness before your insurer will start covering costs. The longer your elimination period is, the lower your premium will be.
The second way you can cut costs is with your benefit period. This is the length of time you will receive care for. The shorter your benefit period is, the lower your premium will be. When making this decision you will need to weigh in your personal situation and the likely length of time you will need care for. Third, you can lower costs when choosing inflation protection. Inflation protection helps the value of your benefit keep up with inflation, but it greatly raised your premium. You will have to compare the risks with the benefits to see if it is something you can forego.
3. Buy Sooner Than Later
The ideal time for buying a long-term care insurance policy is in your 50s. Premiums climb each year you put off buying a policy. It is also important to purchase your policy while you are still in good health. Underwriting standards are tightening and waiting could prevent you from qualifying for coverage.
4. Determine Affordability
Before you purchase a policy, you need to analyze your finances and make sure you truly afford long-term care insurance. You need to consider important factors, such as the fact that insurers can raise premiums after you purchase a policy. You also need to remember that choosing to forego coverage altogether can be very costly as well.
5. Buy with Your Spouse
Long-term care insurance companies often offer discounts to couples. By applying at the same time as your partner you potentially could receive a substantial discount, even if only one of you ends up getting approved.
6. Utilize Possible Tax Advantages
Premiums for long-term care insurance are deductible to business owners or those that have high health care costs. The expense of buying a long-term care insurance policy could be offset for you by the possible tax deductions. It is important that you consult with your tax advisor with specifics as to how this would apply to your tax situation.
7. Consult with a Professional
Even though an insurance agent can sell long-term care insurance, it does not mean that they understand it enough to be helpful. It is important to find someone who is knowledgeable and can help you find the best policy for your situation. As well as can explain all of the nuances each policy has. The more experienced your agent is, the better off you will be.
Questions? Want to schedule an appointment? Contact us by clicking here.