Saving Tips to Properly Prepare for Long Term Care

When has planning to purchase long term care insurance ever been a pleasurable experience? After all, just the thought of needing to have some sort of coverage in the near future can be taxing, especially when incapacitation and disease that goes with old age comes to mind. Not to mention, the horror of trying to find the money to pay for premiums.

Because it can be a struggle just merely talking and thinking about it, most people, unfortunately, do not properly prepare for it. Which is why focusing instead on how to save money to pay for long term care may help potential policy holders to see the benefits of being covered – and motivate them by letting them know that it is possible to have this type of coverage. That said, here are a few and easy ways to save for long term care:

Your Health Will Matter – the condition of a person’s health during the time he or she applies for coverage can determine if a discount can be granted for premiums.  The American Association for Long Term Care Insurance, in a study on good health discounts, showed that applicants with good health can receive up to 10% savings. Which brings up the next point of…

Purchasing Earlier is Better – applicants with good health were observed to be from those who applied for coverage at a young age. In terms of granting the discount, the amount is locked or fixed for the duration of the policy, regardless if the policy holder’s health changes as he or she ages. Aside from the health savings an individual can gain from applying for coverage early, purchasing at a young age also means lower premium prices. Premiums scale to an applicant’s age, with a steep increase in purchases done at ages 65 and up. Additionally, those at an older age may have a higher chance for their application to be denied, mainly because of health conditions that may be deemed as a risk as determined by the insurer or the insurance agency.

Sharing is Caring – particularly for applicants with spouses or partners, a shared or joint policy can save money while at the same time assuring that proper care and support is given. It should be noted that a spouse should have the same benefits with the other in this policy.

Your Employer May Help – nowadays, more companies in the U.S. are including insurance for long term care as part of their employee-benefits packages. This basically means – for interested applicants employed in a company that provides this benefit – individuals simply need to stay and work hard to get coverage (or subsidized payments for lesser amounts to pay) in return for their services.

Think About the Waiting Period – a policy with a longer waiting period means lesser premiums to pay. Extending the waiting or elimination period to 90 days may cut the premium up to 30%.

Consider the Benefit Period – individuals need to think twice about how long benefits should be paid out, in order for them to maximize their investment into the coverage and their savings. By considering medical advancements and the allotted budget that they have decided for their benefits, applicants may then come up with a realistic timeframe for the benefit period that they need. Limiting the benefit timeframe versus an unlimited one is a good way to save money – a 5-year plan may save up to 16% to 25% as compared to an unlimited plan.

Shop Around for the Best Price – individuals pursuing coverage may want to check different agents or agencies for the best price. A person can get the best value for his or her money through comparison shopping – similar provisions or details on the policies to be compared would just be needed to be checked to make sure that the proper or essential benefits are included.

Confirm Tax Deductions – applicable for business owners, tax write-offs can be applied for policies. Interested entrepreneurs may need to confirm with tax specialists for deductions.

Purchasing and applying for long term care insurance can be easy once people follow a painless way on saving funds for coverage. Do you have any more suggestions to save money? Share it below.