Signing up for long term care insurance is an indisputable strategy against long term care expenses. However, most people are anxious to purchase this insurance plan primarily because there’s a wide array of policies being offered in the market. Add the fact that the language of the policy can be hard to comprehend for non-insurance experts and the majority fall under that.
The price of an insurance policy is not on the thrifty side. It’s essential that you have a clear picture of what it is about and the factors that affect its cost.
Basically, long term care insurance is an insurance plan that covers any type of long term care, may it be custodial or skilled. More so, it can pay for the different care facilities. If you hold this policy, you can be cared for in adult day care centers, assisted living communities, nursing homes and even within the confines of your own home.
Premiums depend on your insurance provider, the kind of policy you signed up for and the extent of coverage you wish to have.
If you are employed, look into your benefits. Some companies offer group long term care insurance for its employees—typically at a lower or discounted rate than that of an individual plan. More so, a portion can be shouldered by your employer. This can be advantageous if you’re looking for a budget-friendly way to get covered. In case you decide to leave the company, you can still hold on to the policy as long as you continually pay for the premiums on your own.
An individual plan basically works the same. The only difference is that you will have to completely shoulder the policy’s cost. The upside, on the other hand, is that you have complete say on what will be included in your policy. In effect, you can control how much you’re premiums will be. Simply put, you can easily match an individual policy to your needs.
In order for you get the best policy there is, here are the things that you need to take into consideration:
It is essential that you get your money’s worth by purchasing from a reputable and reliable company. Before signing up for an insurance plan, do your homework first. Research on the company’s standing, track record, financial stability, claims payment history and customer satisfaction rating.
More so, remember that the rates of long term care insurance can vary from one company to another. Insurance providers can have a price difference of 60-90% for the same policy.
Your benefit duration and the maximum amount that your policy will pay for benefits are the primary basis for your premiums. Aside from these two, certain features such as inflation protection, bed reservation or spousal discount can also determine how much your policy would cost. These options can be nice to have, but if you’re trying to lessen the amount you need to pay for your plan, only include the ones that you deem as necessary.
Long term care insurance can be complicated at first, but with a little bit of research, you can have an idea on how it works and how you can benefit from it. If you still have questions, never hesitate to ask. What’s important is you get covered for your future care needs.