Costs of Long Term Care Insurance

4 Ways to Keep Your Long Term Care Insurance Costs CheapWhile long term care insurance might not be cheap, neither are the costs it covers. For most of us, the solution to all of this is to obtain insurance as early as possible when premiums are lower and before any pre-existing conditions arrive.  What About Seniors? But what is the solution when seniors are older and coverage is more expensive? While I believe that you should have complete coverage, there are several ways to keep premiums down. To reduce premium costs consider these options:  How to Reduce Long Term Care Insurance Premium Costs  1. Lengthen the elimination period. The elimination period is a lot like a deductible. The longer the elimination period (deductible), the less expensive the insurance will be.However, this means you will have to pay the expenses for the first 30, 60, or 90 days of care. Having a 90-day elimination period can cut premium costs considerably.

2. Choose a shorter period of coverage. Instead of choosing lifetime coverage choose a coverage period between three to five years. The savings can be significant and according to Worth magazine, studies show the average nursing home stay is approximately two and a half years.  

3. Choose a lower daily benefit. The average annual cost of private nursing home care is about $150 per day, according to the Department of Health. If you chose just $100 per day, you could lower your premiums, if you end up needing the coverage, you could make up the difference with other forms of income, such as social security.  

4. Get a joint policy. If you are married, you could get a joint policy that covers both you and your spouse at a discount. Most major companies offer this. If you had to make a choice on whom to insure you should choose the wife; they are more likely to enter a nursing home due to a longer life expectancy.  

Your Credit Score and Insurance

How Your Credit Score Can Change Your Insurance Quote or Insurance Policy  Did you pay all your bills this month? Your insurance company wants to know. Credit scoring, the term used by insurance companies to rate your credit, has been a disaster for some consumers. Most insurance companies are now basing the cost of your insurance policy on your credit score. Missing as little as two payments on credit cards or other financial obligations could lead to your insurance premium possibly doubling. If your credit score is bad you could pay more when getting an insurance quote. And, regardless of the time you have been with your insurance company or your loss history, a low credit score could lead to a higher insurance premium or possible loss of your policy.   Not Responsible With Your Money…  Not Responsible on the Road? Many are asking, “What does one’s credit rating or credit score have to do with their insurance policy premium or insurance quote?” The answer may surprise you. Insurance companies feel that if you are not responsible with your money, then you are more than likely not going to be responsible on the road. According to his recent statement to CBS, Donald Hanson of the National Association of Independent Insurers agrees. Hanson stated, “Research indicates that people who manage their personal finances responsibly tend to manage other important aspects of their life with that same level of responsibility and that would include being responsible behind the wheel of their car or being responsible in maintaining their home.” Some disagree with Hanson’s ideas on insurance credit scoring and feel it creates a hardship for many who are already struggling.  Using a Credit Score for an Insurance Quote and an Insurance Policy Premium is Unfair  Critics feel using a credit score for an insurance quote or insurance policy premium is unfair and hurts only the working class. A great deal of consumers that have a low credit score are blue collar workers. Opponents argue that the low economy has put a strain on the large amount of working class in America. While struggling to pay for basic necessities they may miss a few payments, which in turn could make their insurance policy premium or insurance quote skyrocket. In many areas public transportation is not readily available and insurance is a necessity. Also, in the case of many Americans who have no health insurance, a medical emergency could be even more devastating when one is having a hard time paying the medical bills and then come to find that their insurance policy premium has been raised tremendously because of a few missed medical payments. Opponents feel the new credit score system by insurance companies just makes the working class fall even further behind.