A common question people have when it comes to long-term care insurance is just how much they should be paying for a policy like this. As with almost every other type of insurance out there, there are numerous factors that contribute to the cost of a long-term care insurance policy.
Age is one of the first factors.
How old you are right now will have a direct impact on the monthly premiums. For example, if you are 50, a long-term care insurance policy is likely going to cost significantly less as a monthly premium than if you were 65 and began looking into this type of coverage.
A 50-year-old in good health might receive a quote of $100 per month as a premium (this is only an example, not an actual quote), which could cover three years of long-term care with only a 90 day elimination period (the time you would have to pay for long-term care out-of-pocket before the policy would kick in) while a 65-year-old may be quoted $250 per month.
The sweet spot when it comes to age for starting a long-term care insurance policy is around 55, but the earlier you start it, the lower your monthly premiums will likely be.
The length of coverage will also be a factor.
You might have an option for six years of long-term care coverage on a particular policy, but that’s going to raise the monthly premiums you pay quite a bit more than if you chose a simple one year coverage option.
Which is ideal for you? That all depends on a number of things, including family history, health issues at the moment, and so forth. The average sweet spot, as it were, is about three years of coverage. Depending on health issues or medical emergencies, you might need long-term care coverage for only a few months or many, many years.
If you focus on about three years of coverage, you should be in relatively good shape for your future.
The elimination period.
This refers to how long you would have to pay out-of-pocket for long-term care before the policy would begin covering those expenses. It’s similar to the deductible of your automobile insurance policy.
The longer the elimination period, the more it will likely reduce the monthly premium. The shorter the elimination period, the more it will likely increase potential monthly premiums.
The best thing you can do when you consider long-term care insurance is to sit down with an experienced broker and discuss all options available to you. Avoid the temptation to wait or kick this down the road a few more years; the older you get, the greater the risk of facing some serious health issues that could require long-term care and if you aren’t covered, it could financially wipe you and your family out in a matter of two or three years.
If you or a loved-one are considering Long-Term Care Insurance in Rancho Penasquitos CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
I work with all the major insurance companies and my objective is to help my clients determine if long term care protection makes sense for them and if so, to help them shop the market to find the best company at the best rate
I specialize in Traditional Long Term Care Insurance as well as Hybrid Long Term Care Plans which are either a combination of Life Insurance and Long Term Care or an Annuity Plan with Long Term Care
I’ve been specializing exclusively in Long-Term Care Insurance Planning for over 21 years.
Steve was recognized as a 2003 Long Term Care Expert of the Year at The National Long Term Care Producers Summit
2006 was awarded Senior Market Advisor of the Year Finalist by Senior Market Advisor Magazine
National Speaker for Numerous Industry Meetings
Awarded Nations Top 10 Agent 8 times by the American Association of Long Term Care Insurance
Author of numerous published articles on long term care planning
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