There are numerous factors that affect the cost of a long term care insurance policy. You can work with an agent to adjust these factors to find a level of coverage that is affordable and makes sense for you. Below are three major factors that affect your long term care insurance premiums:
- Daily Benefit Amount - You can purchase a policy that will pay anywhere from $100 - $500 a day for long term care costs. The coverage can be unlimited; meaning if you need care for 15 years, it will pay the entire time, or it can have a cap, such as 4 years. So after four years at say $200 a day (if that is what you choose) your coverage would end. The lower the daily benefit and the lower the cap, the lower your long term care insurance premium will be.
- Waiting Period - Coverage can start immediately, or you can choose a policy that will have a 90 of 180 day waiting period. The longer the waiting period, the lower your long term care insurance premium will be.
- Inflation Protection - The younger you are, the more important it becomes to have inflation protection on your policy. Inflation protection will increase the daily benefit amount each year by a defined percentage so your policy will still be adequate in light of rising medical costs. The lower the level of inflation protection you have, the lower your long term care insurance premium will be.
Adjusting the factors above can lower the cost of long term care insurance. Some coverage is considered better than none, so it may be worth your time to work with an agent to adjust policy benefits to get a long term care insurance premium that is affordable for you.
To learn more about the factors that affect the premium of a long term care policy read: