There Are Many Ways to Get Long Term Care Insurance for Cheap
Long term care insurance is one of the most important types of insurance for us to obtain as we get older. It is simply too difficult for most individuals to pay for long term care out of pocket when they get older, and so – by obtaining long term care insurance – they have financial support to help make sure they can cover some or all of their costs.
Still, as you get older, you are also more likely to be extra cautious about your finances, and that means that you’ll need to find the lowest rate on a premium you can find. One of the challenges is that long term care insurance has a few more set costs than other types of insurance, where you can typically work with a wider range of options.
So how can you save money and make sure that you get the cheapest premiums possible?
Please note: every situation is different. This is meant to be educational, but is not financial advice and does not necessarily mean that discounts or lower premiums will be possible. Please reach out to an insurance agent for specific information.
How to Obtain Cheaper LTC Insurance Premiums
Long term care insurance has more standard pricing than some other insurance products, due to the nature of the insurance, but there are many ways that one can save money on premiums to help make LTC insurance more affordable.
Many of these involve planning ahead and considering both the timing of when you apply and the structure of the policy you choose. Some of the most common ways people find more affordable rates include:
- Reach Out to Long Term Care Resources Pacific Agency (LTCR Pacific) – LTCR Pacific has partnerships with over 500 universities and affinity groups. If you’re a college graduate or you’re a member of a professional organization, we encourage you to reach out to LTCR Pacific as these partnerships allow us to offer lower premiums for individuals that qualify.
- Apply at a Younger Age – Premiums are based heavily on your age and health. The earlier you apply, the lower the cost is likely to be. Waiting until you are older or have developed health conditions may limit your eligibility or substantially increase the premium. The best time to get LTC insurance is in your early 50s, but you should not let that discourage you from getting it at a later age.
- Consider a Shared Care Policy – For couples, some insurers allow benefits to be shared between spouses. This may reduce the total cost compared to purchasing two fully separate policies with higher individual benefits.
- Select Lower Daily or Monthly Benefits – The higher the coverage amount, the higher the premium. By choosing a moderate benefit amount and supplementing with personal savings if necessary, you may be able to lower costs. Here at LTCR Pacific, we can provide you with more information about your options to help you decide on the monthly allowance you need based on your specific financial situation.
- Adjust the Benefit Period – Many policies allow you to choose between benefit periods (for example, three years, five years, or lifetime coverage). Opting for a shorter benefit period can significantly lower the premium.
- Review Inflation Protection Options – Inflation protection is valuable, but it is also one of the most expensive riders. Some policies offer lower-cost alternatives, such as simple inflation adjustments instead of compound. We can talk about this at our first meeting to show you the differences in policy options and benefits.
- Stay in Good Health – Like life insurance, health underwriting plays a role in determining premiums. Applying when you are still healthy may qualify you for preferred rates, and taking care of yourself now could help reduce when you apply for insurance.
These options may help reduce costs, but each comes with trade-offs. Lower benefits or shorter coverage periods mean less financial protection, which is why it is important to weigh affordability against long-term needs. Part of our role here at LTCR Pacific is to make sure that you’re getting the right options for your situation.
Balancing Affordability With Coverage
Getting the “best rate” does not always mean getting the cheapest policy. A low premium with inadequate benefits may not provide meaningful protection when you need care. The key is to strike a balance between affordability and realistic coverage levels.
Working with an experienced insurance agent can help you compare options across carriers and find the policy that fits your financial situation without leaving you underinsured.
But that doesn’t mean there are no ways to save money. We encourage you to reach out today to find out more about premiums and options.