Do all long-term care insurance policies cost the same?
Definitely not and that's one reason why it pays to speak with a knowledgeable long-term care insurance professional.
Each year the Association prepare a Price Index where we compare prices for virtually identical coverage.
For a single individual age 55, the average cost for coverage ($150 daily benefit, 3 year benefit period would be $1,720.
BUT, the low price was $1,428 and the high was $2,552. The range was as much as 90 to 100% (difference) at older ages.
Some insurance agents can only market policies from one insurance company, Insurance brokers can usually compare rates from five or six insurers.
Unlike other forms of insurance where you can switch insurers from one year to another, generally you buy long term care insurance only once. That's why it's so important to ask your insurance professional if they have the ability to compare coverages.
You can always request a no-obligation cost comparison by calling the Association at (818) 597-3227 or by clicking on the Request A No Obligation Quote banner ad on the right hand side of the website page.
What age is the best age sto start long-term care planning?
I like to say the sweet spot is between age 52 and 64 ... but keep reading
First, yes, the sweet spot is generally between your mid-50s and mid-60s. I like to say start before age 64 because once you qualify for Medicare, chances are you will take advantage of all the free preventive health exams they provide.
Those exams are great. But, if your doctor finds a condition, it could prevent you from health qualifying for long-term care insurance no matter how much you are willing to pay.
And, while most long term care insurance claims start at older ages, don't forget that younger people get illnesses in their 40s and 50s like MS and Parkinson's that can require the need for years of care. Just something to think about.
Where can I read how to reduce the cost of LTC insurance.
We have several great guides that previously appeared in issues of Kiplinger's Personal Finance magazine. Click the link to access them.
We have several great guides that previously appeared in issues of Kiplinger's Personal Finance magazine. Here's how to access them.
Simply click the link below to access them. There is no sign in required - just click the Read Now button.
Click to read free long term care insurance guides
Make me smarter! Are there secrets worth sharing before I meet with an agent?
Ah, the Internet … making us all smarter. Each insurance carrier has one or more "sweet spots" generally based on which ages and health conditions they believe are most
Ah, the Internet … making us all smarter. Each insurance carrier has one or more "sweet spots" generally based on which ages and health conditions they believe are most desirable based on their experience or future expectations.
Some offer advantageous discounts for couples buying together. Others will offer a discount even when only one buys.
Most knowledgeable long-term care insurance professionals have access to policies from multiple insurers and can show you an apples-to-apples comparison without you having to be a NASA scientist (with all respect to those NASA scientists and engineers reading this!). The savings to you could be significant.
Here are questions to ask:
How many LTC insurance policies can you sell (just one or several and if it's several, which companies are you appointed with?)
How many LTC insurance policies do you sell each year? Are they a dabbler or a specialist!
Have they ever had a client go on claim? This will give you a sense of whether they have been do this for 1 year or many years.
I'm 57 and married, how much does long-term care insurance cost?
What you pay is determined by your age, your health and how much protection you select when you apply. But, you want a bottom line. We do a Price Index study
What you pay is determined by your age, your health and how much protection you select when you apply. But, you want a bottom line.
We do a Price Index study every year and a couple where both spouses are age 55 who qualifies for preferred health and spousal discounts may pay $2,702-per-year (that's the combined rate for both)
That's for what I'd call a base plan of protection today. That's about $165,000 in current benefits for each - though we included the shared care option so one spouse can tap the others policy benefits. And, we included inflation protection coverage, that will grow to over time.
But prices can vary significantly from one insurer to another. That's why it's so important to ask your insurance professional if they have the ability to compare coverages. Or (better still) work with someone who specializes in this business.
You can always request a no-obligation cost comparison by calling the Association at (818) 597-3227 or by clicking on the Request A No Obligation Quote banner ad on the right hand side of the website page
I've read about rate increases. Should I be concerned?
It's hard to give a complex answer in just a few words, but let me try. The policies you are reading about in some news stories typically were issued 10 or 15 years ago
It's hard to give a complex answer in just a few words, but let me try. The policies you are reading about in some news stories typically were issued 10 or 15 years ago when LTC insurance was still relatively new and conditions and policy pricing was very different.
Just one example of what's changed. Interest rates paid on investments used to be 10% in 1985 and about 7% in 1995. Long-term care insurance is very interest rate sensitive. So, declining interest rates are great when you are looking to refinance your mortgage but lousy for an LTC insurer with older policies.
But that was then; and this is now. Policies issued today in most states are governed by new regulations issued by the National Association of Insurance Commissioners and adapted by most states. These regulations mandate that policies are priced fairly and accurately based on everything that's been learned.
So, while no one can guarantee the future … nope not even me … there are many more safeguards in place today to protect you. And, there's a cumulative experience that has been gained along the way.
How do the new long-term care partnership plans differ from other Long Term Care insurance plans?
About 40 states have adopted Long-Term Care Insurance Partnership plans and others will undoubted do so.
About 40 states have adopted Long-Term Care Insurance Partnership plans and others will undoubted do so.
We will post a fuller explanation of the significant benefits these plans offer. But they are basically the same long-term care insurance policy ... just "New and Improved" with a very special added benefit; the State-provided additional asset protection feature.
