Factors That Affect Your Long-Term Care Insurance Premium

Insurance can feel complicated at times, as you try to determine the total amount of your policy, how fair your premiums are, and whether or not the details of the policy are advantageous to your long term financial status. Within every insurance policy are pages upon pages of details that outline each and every possible scenario and factor that affects how much you pay and what you ar provided.

That is why it is so important to speak to an expert in long term care insurance – someone that can answer your questions and help you truly understand your insurance-related decisions. If you are looking for long term care insurance and want to better understand your premium, the best approach is to first contact Long Term Care Resources. Fill out our online form, or give us a call to get started.

What Affects LTC Insurance Premiums?

Long term care insurance is designed to cover the costs of care services that individuals might need as they age or in case of a chronic illness or disability. Health insurance may not cover preferable forms of care (such as in-home care), and very few people have a retirement large enough to address those costs.

Long term care insurance (LTC) is designed to supplement those costs to help people get the care they need. It is a very important form of insurance that can help you get the care you need as you get older. But the premiums for long-term care insurance can vary significantly from one person to another, and it helps to have an idea of what factors affect it so that you can know when you’re getting the right deal. Some of these factors include:

  • Age at Purchase – The age at which you purchase your policy significantly impacts your premiums. Generally, the younger you are when you buy long-term care insurance, the lower your premiums will be. This is because insurers view younger applicants as less likely to make claims soon.
  • Health Status – Insurers will assess your current health status through a process called medical underwriting. Pre-existing conditions, past health issues, and your family health history can all influence your premiums. Better health typically leads to lower premiums.
  • Gender – Statistics show that women tend to live longer than men and may require care for a longer period. As a result, premiums for women can be higher than for men, reflecting the increased probability of a longer utilization of benefits.
  • Marital Status – Married individuals or those in a partnership may receive discounts on premiums. Insurers often offer lower rates to couples because they tend to provide some level of care for each other, potentially delaying the need for paid care services. It may also be possible to save money if policies are bundled together.
  • Length and Amount of Coverage – The scope of coverage you choose affects your premiums. Opting for a longer benefit period, a higher daily benefit amount, or inflation protection will increase the cost of your premiums but provide more comprehensive coverage.
  • Inflation Protection/Cost of Living Adjustments (COLA) – Adding inflation protection to your policy can significantly affect premiums. This feature adjusts your benefit amount to keep pace with inflation, ensuring that the benefits are adequate if you need them years after purchasing the policy.
  • Elimination Period – The elimination period is akin to a deductible in other types of insurance. It’s the time you must wait before the insurance begins to pay out. Choosing a longer elimination period can lower your premiums, but you will need to cover your own long-term care costs for a longer time before the insurance kicks in.
  • Organizations/University Partnerships – Unique to LTCR Pacific, our team at Long Term Care Resources also have discounts and potentially lower policy costs due to partnerships that we have with colleges, universities, and professional organizations throughout the country.  

LTCR Pacific does its best to find you a policy that meets your financial goals. We are licensed in over 30 states to help connect you to long term care at a premium that makes sense for you.

Get Your Personal Quote – Contact LTCR Pacific Today

The cost of long-term care insurance is influenced by a combination of personal factors and the specifics of the coverage you choose. When considering long-term care insurance, it’s important to evaluate how these factors will impact your premiums and choose a policy that fits your financial situation and coverage needs. Consulting with a long term care insurance specialist can provide personalized insights and help you navigate your options effectively.

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