There is only one secret how to save on long term care insurance (LTCI) and that is by planning early. Even if you exert effort in going around to ask the experts in hopes of getting a different answer, you will be disappointed because there really is only one solution and that is by purchasing your policy at a young age.
Young does not necessarily mean 30 years old, although statistics reveal that there are individuals close to or a little over this age who have already secured their LTCI policies. Most of these early planners say they have witnessed how their parents lost everything that they’ve worked so hard to acquire to the long term care (LTC) expenses of their grandparents.
Afraid that they might find themselves in the same situation someday, they took the initiative to buy an LTCI policy while they are still young and working despite being told that they will have to deal with longer premium payment.
Purchasing a policy is less complicated to a person who is decades away from retiring. All he needs is an LTCI specialist to help him understand what goes into a policy because aside from being young, he is a newbie clueless about how his choices today will affect the cost of his coverage tomorrow.
With an LTCI specialist to guide him as he weighs his policy’s maximum daily benefit, coverage period, and rate of inflation protection among others, it won’t take long for a 30 or 40-year-old to finalize his LTC plan.
How to Save On Long Term Care Insurance
Some people will argue that it’s all right to buy an LTCI policy at a later age for as long as they are willing to cut back the variables of some components in their policy.
For instance, instead of a maximum benefit amount of $ 300,000 the individual should settle for $ 175,000 or, perhaps, instead of a five-year benefit period why not three years? These are just some ways to cut back one’s annual premium and they are actually happening already.
However, why would anyone want something half-baked as this when they can easily and simply get an ideal coverage at a price that they can afford if they only start their LTC plan before experiencing changes to their health?
You’ve probably heard a gazillion times that “prevention is better than cure” so why not think of an LTCI policy as the manner in which to prevent an illness while illness here is best represented by financial losses. Cure, on the other hand, depicts your assets which can easily evaporate to the high cost of care.
It’s true that cutting back some variables of his LTCI policy shall allow an individual to save on his annual premium, but going down that road could also result in irreparable financial damages.
LTC costs are expected to rise fourfold in less than 20 years so with this information in mind, people should understand that deciding on a low coverage amount can be risky.
How to save on long term care insurance has remained to be an immortal question in the industry but the answer to this depends on a person’s outlook in life. If he wants to preserve whatever he has today for his sake and his family’s, he will plan his LTC as soon as possible.
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