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The Cost of Long Term Care Insurance Varies

In our changing economy the long term care insurance cost has become a greater concern. Medicare is changing. Increased medical technology has lengthened your life expectancy. Provisions for these extra years and levels of care are issues many of us are facing. These shifts in lifestyle are causing many to consider the benefits of purchasing Long Term Care insurance (LTCi). The difficulty of the decision is increased by the multiple variables in cost based on coverage.

 

Factors of Age

The age at which you purchase your policy is a large factor in determining the cost of your Long Term Care insurance. Since a younger person is less inclined to make a claim his or her premium is much lower than that of an older person. Older clients' premiums are much higher as the risk involved is greater. As with any insurance policy the higher the risk the more costly the premium will be. Your LTCi policy may not come with a fixed rate; and premiums may continue to increase as you age.

 

Factors of Health

A healthy individual with a clean medical record can also expect lower rates. Insurance is a lucrative business and the insurers expect to profit from it. Those who are considered a potential risk because of a poor health record can expect to incur a higher premium. Depending on certain pre-existing conditions you may find it impossible to obtain coverage.

 

Impact of Coverage

Long Term Care insurance policy choices are as abundant as the colors of the rainbow. You may modify and adjust your policy to fit your personal needs and budget. You may begin your policy at a young age with few options. As you age and your potential need for care increases you may add options and services to increase your level of comfort and care.

 

Waiting Period

The waiting period is the number of days you choose to forego coverage and opt to pay for expenses out of your own pocket. This is a bit like your deductible on other forms of insurance. It is possible for waiting periods to range from 0 - 100 days with the shortest waiting period commanding the highest price. Your present and projected future income will be helpful in determining which timeframe will work best for you.

 

Type of Care

The type of care you choose to have covered will have a big effect on the cost of your premium. This will also include your choice of coverage duration. In home long term care is the least expensive. You may determine the duration of in home care. You may also determine the type of care to be covered. A home health aid will cost considerably less than a skilled nurse or therapist.

Here are some questions to ask. Will you require someone to administer medication and therapy, or someone to assist you with light household duties? For how many hours a day and how many days out of the week do you want your LCTi policy to cover the costs of your assistant? If you no longer feel safe when left alone where do you wish to reside?

Of course, you don't necessarily know with certainty many of these answers. Even so, your educated guesses will help you make the decision. Purchasing a policy which contains adequate assisted living facility coverage can save you quite a bit of money in the long run. Many assisted living facilities cost half of what a nursing home would charge. They also offer a wider range of freedom while providing the monitoring and assistance your need.

Whether the plan is for yourself or someone you love considering the type of nursing home or extended care facility that will be used if this issue ever occurs is a really good idea. This will help you decide how much coverage you should purchase for this crucial time. You don't have to let circumstances decide for you.

 

Less than You Think

Most people who have not purchased LCTi estimate the cost of coverage to be 50% higher than it actually is. Prices can range from $297 a year for a 40 year old with an inexpensive plan and company to $1,200 a year for a 70 year old with the same plan and company. On the other hand a 40 year old can pay $3,500 or more per year while a 70 year old can pay over $9,000.

The decision to purchase LCTi may be difficult, but is not impossible. Obtain counseling from a financial advisor, attorney, or life planning consultant. Discuss options with your family. Whatever you decide, don't let the cost of Long Term Care insurance stand in the way of living your life to its fullest potential.

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