Long Term Care Insurance Plans

Written by Norene Anderson
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The cost of long term care insurance plans is determined by your health status, age, and place of residence. Many of the carriers require a health examination before issuing coverage. Others simply request a copy of your medical record to substantiate the information submitted on your application.

Buying long term coverage at a younger age will reduce the premium considerably. If you are a healthy 50-year-old, you may be able to purchase coverage for around $1,400 per year. The same type of coverage for a 70-year-old can be over $6,000 a year. The good thing about getting a policy in your younger years is that you can lock in the annual rate and it cannot be raised unless it goes up on all policyholders in your class.

Evaluate Long Term Care Insurance Plans

Your best plan may be to buy an inflation rider to make sure you have adequate coverage when you need it. With the cost of health care on the rise, it is certain that 10, 15, or 20 years down the road the cost of assisted living will also increase. If the policy you choose is a tax-qualified policy, it must offer an inflation rider as an option.

Some plans offer the option to stop making the premium payments when the insured moves into a nursing home. Other plans may offer a premium refund to your estate if you have paid in more than you received in benefits. It is advisable to choose a plan from a company that has been in business for at least 10 years. This gives the company an opportunity to evaluate the premiums in relation to inflation over a longer period of time.


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