Factors that Affect the Costs of Long Term Care Insurance

With the increasing spread and the surprising statistics about long term care, you may be interested to find out which long term care insurance or LTCI would best fit you or your family. Although, there are many insurance companies offering long term care plans today, these policies are not created the same. They differ in coverage, terms of contracts, features and more. However, all of them will help you pay the costs of long term care.


The price of the premium is very important because it will determine if you will be able to afford the policy or not. When shopping for the LTCI policy, here are some factors that you may want to consider because these usually affect the price of an LTCI policy:


photo credit: infolongtermcare.org

photo credit: infolongtermcare.org

Your Age

Survey shows that in 2009, 54 percent of those who have long term care insurance are between 55 and 64 years of age, while 26.5% are under the age of 54. Why is age important? When you apply for long term care insurance, your age will determine how much your premium is. Generally, long term care costs increase every year depending on your age. If you are in your 50s, the yearly rate increases by 2 to 4 percent. However, as soon as you enter 60, your annual rate can climb to as much as 6 to 8 percent.


Any Existing Health Condition

Before you apply for the LTCI, your insurance provider would advise you to undergo a series of medical checkups. This is to find out if you have an existing health condition. An existing health condition may cause your application to be declined. On the other hand, not all pre-existing conditions are subject to disapproval of your LTCI policy. The new healthcare law known as ObamaCare was recently passed and it has some promising changes about pre-existing condition clauses. This law would remove a number of pre-existing clauses entirely from the health insurance by 2011.


The State where You’ll Receive Care

The costs of long term care differ by state. If you are planning to apply for LTCI, figure out what state you intend to receive care. Once you have identified the rates in your specific area, you will have a better picture of the variations in costs based on the type and amount of care you might need in the future.


Inflation Protection

You can choose to add inflation protection to your policy. This would increase the daily benefit amount per year. Since, the costs of medical and skilled care rise each year, this would ensure that your policy is still adequate to cover your expenses. Remember that the lower your policy’s level of inflation protection, the lower your LTCI premium will be.


Selecting long term care insurance is not easy. When deciding what insurance policy to buy, consider not just the features and coverage of the policy, but also the price of the premium. The costs of long term care insurance are affected by certain factors and you need to understand them in order to get the best LTCI for you and your family. 







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