Reducing Long Term Care Health Insurance Costs
In all cases when you buy insurance if you can reduce the risk to the insurance company, you can save money.
Here is a list of potential ways to save money on long term care health insurance:
- Find a group policy for long term care health insurance. Group coverage will always be less expensive. The risk for the long term care health insurance company is reduced because it is spread among the group. The challenge is that group policies may be restricted in what they cover. You can always supplement a group policy with some additional individual coverage, if you need it.
- Buy early. If you wait to buy long term care health insurance until you are in your 60's your premiums will be much higher. Premium increases are steep in this age bracket. Buying much earlier will not only save you money on a per premium basis, but may even save you money over the time you are insured. It also keeps you insurable. If you apply for long term care health insurance, and you are already elderly, you could be denied coverage.
- Buy a policy with a waiting period for benefit's. This is the same principle as buying auto insurance or home insurance with a deductible. You assume some responsibility for paying costs out of pocket and in return you get a break on your long term care health insurance premiums.
- You can also consider a long term care health insurance policy which only pays a percentage of the actual costs of care. This is another way to keep premiums lower.
- Always compare quotes. While you are comparing quotes, also compare long term care health insurance companies. The long term care health insurance company with the lowest premiums may actually have a track record of the most premium increases. Check all the factors which might affect you. If a long term care health insurance company increases premiums frequently, and you are buying insurance while you are young, you may more than make up the money you save initially - over the long term.
- Make sure any long term care health insurance company you buy from has an extremely stable financial history. Especially in cases where you are buying insurance that you may not collect on for decades, you want to be sure that the company will still be in business when you need them! There are many companies which provide credit and financial ratings for insurance. It's worth the effort to do a bit of checking.
Don't forget to look at the other pages like: Health Insurance, how do I choose a health policy, group health insurance and individual health insurance, health insurance questions, long term care and save money health insurance to make an informed decision.