5 Things to Lower the Cost of Your Long Term Care Insurance

It seems inconceivable to most people that one day they may need long term care in a nursing home or other facility, but the fact is, almost half of all Americans over the age of 65 do require some form of long term care at some point in their life.

Surprisingly, even many people in their 40s (and sometimes younger) can require long term care due to illness or accident. Purchasing a long term care policy as young as 40 makes good sense, not only due to the possibility that it could actually be needed at that age, but because the premium cost is so much lower the younger a person is when they take out long term care insurance.

Long term care insurance can provide several benefits. It can help to protect your home and other assets which would otherwise need to be disposed of to pay for care, it can help to maintain your dignity and independence, and it can relieve family members of the burden of coming up with health care options.

Who needs long term health care? Almost everyone, regardless of age. One of the biggest myths which keeps many people from looking into long term health care is that Medicare will provide for all of your health needs, including long term care, once you reach aged 65.

Wrong!

Medicare pays for almost no long term care whatsoever. Do not count on Medicare.

State Medicaid programs are often slightly better at providing long term care, but the quality of that care can be spotty at best, and once you become part of the state bureaucracy you have few – if any – choices regarding the type of care you will receive or the type of facility in which you will receive it. Horror stories abound when it comes to long term Medicaid treatment.

If the answer, then, is private long term care insurance, what are some of the ways to get the coverage you want and need and yet keep the costs as low as possible? In this article we will discuss 5 specific things you can do right now – today – to lower the cost of your long term care insurance.

Combining some or all of these five ideas can save you a great deal on your premiums, but even if only one of these ideas applies to you and your situation the savings you can realize over the years can add up to a very healthy sum.

• Sometimes it can be a good idea to buy your policy from a Long Term Care Insurance Group. This is an agency or a group of independent agents who do nothing but sell long term care policies. One of the problems frequently encountered when purchasing long term care insurance is that this type of insurance is relatively new and many people – including many insurance agents – simply do not know all the ins and outs of this insurance. Working with specialists may help solve this problem, although it is still highly recommended that you physically read a copy of the contract before signing it and make certain that all of the provisions you want are included and that everything you have been told verbally is in the contract, in writing. Remember, if it is not in writing in the contract then it doesn't matter what you have been told.

• Long term nursing home care can be extremely expensive and such care is getting more and more expensive each year. While the cost varies from state to state and even from region to region, the yearly cost for round-the-clock nursing home care can easily exceed $75,000 – and with inflation the cost for such care in the future could be considerably greater. It is often less expensive to purchase a policy designed to provide for in-home assistance as required, often three or more days a week. This type of policy, while less expensive, makes the assumption that you will have some ability to care for yourself in the future or that friends or relatives will be available to fill-in as needed.

• Buy long term health care insurance now. Don't wait. The cost for long term health care insurance is rising at about 12% per year. Add to that the fact that the younger you are when you first purchase long term health care insurance the lower your premiums are going to be. When you purchase a policy make certain that it has an inflation provision built into it. Such a provision may cost a few dollars more, but such a provision can make all the difference in the world when the time comes for you to call upon your insurance.

• Talk to your insurance agent about an umbrella health insurance policy to cover all or a portion of your long term care costs. Umbrella policies, which often cover expenses up to and exceeding $1 million, can have a very low premium. If your agent is able to structure an umbrella policy correctly you may be able to cover almost any situation which would trigger the need for long term care and which is flexible enough to provide for a variety of care situations.

• Use a health care specialist, also known as a care assessment specialist or a care coordinator. On the surface this may seem like an expense rather than a savings. While some insurance policies will pay for the advice of a personal care specialist many do not and so the cost – which can be an hourly rate or a flat fee – falls to the family or to the person receiving care. In the long run, however, a professional care specialists, who understands the maze of health options and knows where the best prices are, will almost invariably not only save you a considerable amount of money but will also save time and make the entire process smoother and less stressful for everyone involved.

Obviously maintaining a healthy lifestyle will help to keep the need for long term care insurance lower and a healthy lifestyle – including frequent trips to the doctor, maintaining a healthy weight, stopping the use of any tobacco products, restricting the consumption of greasy fast food and cholesterol – will also keep the cost of your long term health insurance policy lower as well, saving you money month after month.

While it is more difficult to put together a long term care insurance policy that is designed to save money than it is to put together such a policy when purchasing life or auto insurance, for example, it can still pay off handsomely to compare prices for long term care insurance online.

Dozens of sites exist which are designed to compare prices for long term care insurance. Utilizing these sites may help you to save money and they may provide additional information that will help you as well. Long term health care is not well understood by the majority of people who need the coverage so take your time and do your homework.

And remember, one of the best ways to save money and find the best insurance care possible is to consult with a number of professionals, from insurance agents to doctors to professional care managers.