If you are 50 or older, most financial professionals agree that planning for the future potential risk of needing long-term care is a smart move. It’s an even smarter move to save money on that protection and, with a bit of checking today, experts report that you can save anywhere from 10-to-40 percent each year.
According to Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade organization, some 50 insurers currently offer long-term care policies on an individual basis or through employers. “Each company sets their own pricing for protection and each has price variances that based on your age, your marital status and your health.” The difference can be quite substantial.
Your health plays an important part in determining what you will pay for long-term care insurance. Leading insurers offer preferred health discounts, similar to good driver discounts offered by car insurance companies. These preferred health discounts generally are 10-to-20 percent of the yearly cost and cannot be taken away even if your health changes at a future date.
A recent study by the American Association for Long-Term Care Insurance revealed that 54 percent of applicants between ages 40 and 49 qualified for this discount. “Less than a third (31%) of applicants who wait until they are 60 will qualify for this savings.”
Discounts offered to married couples today generally range from 15-to-40 percent each year when more than one individual buys coverage at the same time. A partial couples discount may even be offered if only one partner is covered.
Another way to reduce the cost of long-term care insurance is to add a deductible period to the policy.
Most people are familiar with the concept of deductibles on their car, home and even health insurance.
Adding a deductible, often called the Elimination Period to your long-term care insurance protection can reduce the yearly cost by 20 percent.
An eight-page booklet published by the American Association for Long-Term Care Insurance, provides more detailed information on ways to reduce the cost of long-term care insurance.
To request a free copy of “Ways To Save” call or email me, Rob Ferrini of Ferrini Insurance Associates at 781.762.5626 or rferrini@robferrini.com
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