Whenever we set out to purchase a long term care insurance policy, we may have to spend a good deal of money for owning it. But this expenditure can be successfully controlled if one follows some basic techniques. All these techniques of saving money on long term care insurance policies have been mentioned here vividly in this article. Plus, it will also inform people to follow some essential guidelines too in addition to saving money, while purchasing such a policy.
Owning a long term care insurance policy is indeed a sound decision, but one may have to spend a good deal of money to pay up its premiums. But in this article, you will get to know different things that will help you to save your expenses, for owning a long term care insurance policy. You are advised not to depend on the cost of the insurance policy only, while purchasing such a policy. Below are mentioned two of the most helpful tips, which will tell you how you can save your expenses on long term care insurance:
- It is always advisable to purchase long term care insurance policy from such a health insurance company, which has got a good market positioning and a satisfied clientele. Also, it must be economically sound. Buying these types of policies from a good insurance company will help you to spend the exact money that is required. You will not be charged extra, when you purchase such policies from a reputed and trusted insurance company. In order to find a good private insurance company, you can take help of the standard rating systems, which rates a company on the basis of their financial standings, dealings, services and many other provisions.
- Depending on your income level you should go for that policy, which charges you an affordable monthly premium. The National Association of Insurance Commissioners suggests in its Model Regulation for Long-Term Care Insurance, that it is better to go for a long term care insurance policy whose rate of premium is 7% or less than that, to your monthly earnings. This is like if you get a monthly salary of $5,000, the monthly premium of the long term care insurance policy must not exceed above $350. As per the suggestions of another connoisseur, it is better to consider that earnings from which you will be spending your money, for the insurance policy's monthly premium and not your present earnings. Generally these earnings are the money which you will receive after you retire; so while estimating your expenses for the policy's premiums, consider this income of yours.
Few of the other tips for saving your expenses
Apart from the ways that are mentioned above, you can also follow some of these following tips mentioned below, that will help you to prevent over expenditure for your long term care insurance policy:
- There are many recruiters who provide the facilities of long term care benefits through the group health insurance policies, which they offer to their employees. So you can confirm from your recruiter also, that whether you can avail the similar benefits or not. If you can avail such benefits, then you will not require buying a separate long term care insurance policy. In this way you can avail double benefits (combining the group healthcare coverage along with the long term care benefits), at the same time by paying less. However, if this happens you may have to pay the premium under a discounted rate, which is comparatively, low than that of a separate long term care insurance policy.
- There are many life insurance policies or pension policies, which allow their customers to introduce the long term care insurance benefits along with it. So if you own a life insurance policy, then enquire that whether you can avail such facility or not. Such an amalgamation can save a lot of your expenses than owning a separate long term care insurance policy, but enjoy the similar benefits.
- Search for a long term care insurance policy that offers you a highest waiting period, which you can comply with. It will help to cut down your costs on premiums. For instance, if you select a waiting period of 90 days instead of a waiting period of 30 days, then you will be able to save your expenses on paying the monthly premiums, by about 30 percent. In case you require long term care benefits, then you must set aside some amount of money in order to compensate these expenses, till the termination of the waiting period.
- If in case you and your spouse desire to receive long term care benefits individually, then you can purchase a combined long term care insurance policy. With such a combined policy either you or your spouse can receive long term care benefits, whenever required. Also if the coverage limit of your combined policy permits, then both of you can receive long term care benefits at the same time if required. It will thus save much of your expenses as you pay a single premium, rather than paying for two different policies.
- In case you still want to cut down your expenses further on the monthly premiums of your policy, then search for a convenient policy that will offer you the maximum benefits but not entire part of the expenses incurred, of the average nursing home charges that are applicable in your region. For instance, if the each day charge of a nursing home room is $120 at present, then you may purchase a long term care insurance policy that compensates $100, for such services daily. While buying such a policy you must also ensure the fact that your chosen policy is protected against the influence of inflation. All this will help you save your expenses.
- Before buying a long term care insurance policy, you must pay a visit in different insurance companies and get quotes for evaluating the benefits, services that you would receive and your expenditure for each such policy. Purchases of long term care insurance policies, made after such careful evaluations are always successful, and have proved to be the most ideal and affordable for customers. However, you must make sure that you maintain a similarity in the features, financial standings and clientele records of the insurance companies, while comparing the features of their long term care insurance policies. Do not judge the policy offered by a strong company (strength reflects on the basis of the status and financial position of the company), against that as offered by a weaker company. In that case you may get erroneous results that will force you to take wrong decisions.
So by following all these tips that are mentioned above, you will be able to save a lot of your money on a long term care insurance policy, which will be also suitable for you.