How Can I Save Money On My Long-Term Care Insurance?
Saving money is a top priority for most people today, and if you’re reviewing your monthly budget you might be wondering where you can cut costs. When it comes to long-term care insurance, you can manage to make some savings without taking the unwise step of canceling your policy. Here are some top tips to help you to lower the cost of cover so you can stay protected without breaking the bank.
1. Buy As Early As Possible
In an ideal world, you’ll buy your long-term care policy at the time when it’s possible to reap maximum benefits for minimum cost. Experts tend to agree that the most affordable time to purchase a policy is when you’re aged 55-60 since you’ll usually still be healthy enough to benefit from a lower rate. The American Association for Long Term Care Insurance reports that the cost of a policy for someone aged 65 could be over double that for a 55-year-old, so buying early is always a good idea.
2. Apply With A Partner Or Spouse
A quick browse through a list of companies in the market will reveal that most providers will offer a discount to domestic partners living together and married couples. The savings could represent as much as 30%, and a partial discount is usually offered even if just one partner is approved.
3. Share A Policy
You might want to consider sharing your policy with a spouse. When you take out a shared policy, you’re each purchasing a policy and the benefits are able to be combined. This allows couples to essentially double the potential amount of cover they can enjoy without needing to buy more coverage individually. This is especially beneficial for couples where there’s a big age difference.
4. Choose Benefits Sensibly
If you’re able to pay out yourself for several months of long-term care, you may want to think about increasing the period that you wait before your policy pays out in return for a lower premium. Also, if you may be able to cover some of the costs out of your own pocket, you may want to consider reducing the amount of daily maximum benefit on your policy. Thirdly, you can review the kind of inflation protection provided by the policy. If you think your savings and income are able to cover any increases in cost, you can eliminate the inflation protection element from your policy to slash your premiums.
5. Plan In Advance
Begin to think about retirement at an early stage. The cost of long-term care varies between regions, so you need to determine where you’ll be retiring. Will you stay in your own home? If you make your property accessible early, you might require less assistance when you get older. Are you thinking of relocating? Then remember to factor in the cost of care in your new area when making your decision.
With these five expert tips, you should find it easier than you imagined to reduce the cost of your long-term care insurance policy without eliminating your coverage altogether.