We all prefer to make sure that a product meets our standards before making a purchase. Especially for long term care, where we all need to make sure we’re getting the proper care and attention if and when we need it. And the most important factors to consider when it comes to long term care insurance (LTCI) purchases are typically about the price, quality, and purpose of the product.
Buying the right LTCI for your needs means finding a policy that will fit your budget, will answer your LTC needs, and not be the cause of future problems. Identifying and addressing these crucial points beforehand will allow you to both save time and money, freeing yourself up to focus on other important details when it comes to retirement planning. Consider these LTCI factors before buying a plan:
The costs for LTCI and its premiums are affected by a buyer’s health condition and age at the point of purchase. The healthier and younger you are, the lesser your LTC-related needs will be which equates to lower costs. Additionally, purchasing a policy at an earlier age lessens the risk of not being qualified for coverage. The older you get, the more prone you are to diseases – which may deny you from the coverage you will eventually need.
It may seem that you can save money with a cheaper plan. However, costs (because of possible out-of-pocket expenses) may go up since your needs are not properly addressed. The top priority in choosing an LTCI policy is finding appropriate answers to your needs without sacrificing quality or purpose. Consider your needs: will a cheaper plan directly address my circumstances? Will getting a less-expensive plan mean out-of-pocket expenses for LTC support?
The best way to save on funds for LTCI is by learning more about your policy. This includes checking state tax rates for LTCI and finding out if there are other programs help reduce costs that you can qualify for. A commonly recommended program to inquire about would be state-partnership programs which protect your assets from the typical Medicaid qualification process. If you are married, ask your LTCI agent for spousal discounts.
There are two main components for considering LTCI: financial and custodial care. You cannot disregard one for the other. Both must be given time for proper planning and evaluation.
When buying LTCI, making a sensible decision requires time to make the financial and custodial components work with each other. Do not focus too much on one component as it will cause future problems. Stick to the basics. Identify possible long term care support that you may need, then find a policy that will best address those details.
Lastly, the best way to prepare for purchasing a policy is by seeking advice from LTCI agents and financial experts. These individuals will be there for you every step of the way to help you get a plan that will best suit your needs. Don’t be shy to ask – after all, this is your future you’re preparing for.