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How to Find the Best Long Term Care Insurance Rate

Finding the best long term care insurance rate is a matter of balance. You need to balance the premiums you can afford, with the most insurance protection you can find. This article is to help you get the most coverage from your long term care policy for the lowest cost.

 

Research for the Best Long Term Care Insurance Rate

It will take some time and research for you to find the right long term care insurance for you at the right price. However, it will be well worth the investment.

The internet is a great place to find a ton of information on long term care insurance. You can find articles such as this one to provide you with much needed information. You can also research specific policies, find statistics related to the need for long term care and also learn about specific long term care insurance providers.

One of the most important things you can get online is long term care insurance rate quotes. There are no obligations to buy, and you can collect quotes from multiple long term insurance companies to compare policies and rates. It is the most convenient way in which to shop around for long term care insurance and a money saver.

 

Find the Right Long Term Care Insurance Company

Because you will most likely be paying premiums over a period of time before you need long term care, the company you choose to supply your long term care insurance is incredibly important. You want a company that is financially stable so that when you need them, they will still be around.

There are rating companies that measure the present and future stability of long term care insurance companies. In your search for the best long term insurance rate, make sure you check with A.M. Best and Standard and Poor's for the financial stability rating of company's you are considering. You want a company that is in the top two highest ratings for each of these organizations's rating system.

 

What Not To Leave Out of Your Long Term Care Insurance

In your search to find the best long term care insurance rates, there are some things in which you should not skimp on. These are items that can leave you in a serious financial situation if you need to use your long term care insurance in the future.

  • Inflation Protection: This is a big one. It will mean higher premiums for your long term care insurance, but you must have it. It increases your daily benefit by around five percent per year to keep up with inflation. Without it, your long term care expenses could surpass your long term care coverage and leave you with large out-of-pocket costs.

  • Activities of Daily Living: These are the activities normal to daily living that you can no longer perform on your own and that kick start your long term care policy into action. Do not go for a policy in which you need assistance in more than two of these activities before your policy begins paying out. This could leave you in a situation in which you need long term care, but your policy will not declare you eligible for benefits.

 

Get the Right Amount of Long Term Care Insurance

It is somewhat difficult to know how much long term care insurance you may need and for how long you may need it. Here are some numbers to help you gauge the average costs of long term care. These are nationwide numbers that will vary somewhat depending upon where you live.

Statistics from the U.S. Department of Health and Human services show that people over the age of 65 have a 40 percent risk during their lifetime of having to enter a nursing home. Of those who have to enter a nursing home over the age of 65, 10 percent spend five years or longer.

A recent study from the Genworth Financial Long Term Care Insurance Review stated showed the average cost per year of a stay in a nursing home is over $75,000. Home health care costs average over $28,000, while an assisted living facility averages nearly $37,000 per year. When you multiply that by the average length of long term care, you get expenses that can quickly wipe out your retirement savings. Also, remember that there is about a five percent increase in long term care costs per year.

 

When to Buy Long Term Care Insurance to Get the Best Rates

The older you get, the more expensive long term care insurance will become for you. Long term care insurance companies will tell you to purchase the insurance at age 50. That may be a little early unless you have some reason to think you may need the insurance earlier than most, but it will mean lower premiums that can be locked in for the life of the policy.

The earlier in your lifetime and the healthier you are, the lower your long term care insurance rates will be. If you are healthy, the best time to consider purchasing long term care insurance is around the age of 60. You must make sure they are locked in rates and that they are guaranteed for renewal.

 

Cheap Long Term Care Insurance Rates

Here are a few ways to reduce your long term care insurance rates, though they do come with some risks.

  • Annual payment instead of monthly

  • Longer waiting period (Risky)

  • Shorter benefit period (Risky)

  • Smaller daily benefit (Risky)

  • Use same company for you and spouse

You have to find a balance between the insurance you need and the insurance you can afford. For instance, a smaller daily benefit may leave you having to pay out-of-pocket if the insurance does not cover all of your expenses. Cutting back on these above items will lower your long term care insurance rates if you cannot afford more comprehensive long term care insurance.

Long Term Care Insurance Rates