There's only one reason you're putting so much money on your long term care insurance premiums. Most probably, the importance of cinching a long term care insurance (LTCI) policy only dawned on you when you turned 65 or perhaps 70.
Buying a policy few years before retirement or after retiring will not guarantee you a low annual premium but the exact opposite. Haven't you ever found yourself wondering why LTCI professionals keep reminding the public to get in touch with their agent and start requesting those quotes? It's not to pester anyone but to spare everybody from forking out a chunk of money for their annual premiums.
Close-minded people can think and decide to delay the purchase of a policy until they have reached what they perceive the age that they will require care. They believe that this will save them from long years of premium payment. What they don't get is that the more years an individual pays for his policy, the smaller his annual premium.
That's precisely why there are young adults between 25 to 40 years old who own LTCI policies already. By purchasing LTCI policies early on in their lives, they get to enjoy very low annual premiums which range from $400 to $600. Now compare that to an annual premium of $6,000 which is maintained by a senior citizen who bought his policy at the age of 70 and when he started to show symptoms of diabetes. See the difference?
Meanwhile, if you're too confident that you can afford the price of an LTCI policy even if you purchase it later in your life then perhaps you can opt for the single-premium payment. This is one way to pay for your policy and it's fast but very expensive. The only good thing about it is that you don't have to worry about being subjected to premium hikes because your policy has been paid in full already.
Maneuvering Long Term Care Insurance Premiums
Each insurance company that markets LTCI policies has its own underwriting which is pretty much based on the applicant's age and health condition at the actual time of his application for a policy.
Applicants with no preexisting conditions naturally get to pay low annual premiums but those that have are imposed to pay a higher rate. However you look at it, there is no way that one can escape high annual premiums if he decides to buy an LTCI policy later in life.
Now that you know the advantages of securing a policy at a young age and the disadvantages of buying when you're old, it's absolutely your call.
To ensure that you will get a policy that you can afford, here are a few tips:
• Get in touch with an LTCI representative who is affiliated with renowned insurance firms that market LTCI policies. • Identify the type of care that you will possibly require in the future and see to it that your policy's maximum daily benefit amount conforms to the cost of care in your area. • Settle for a three-year benefit period as long benefit periods usually trigger high long term care insurance premiums. • Make sure that your policy has an inflation protection rider. • Do all these things before your hair starts turning gray.
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