Strategies to Lower the Cost of Long Term Care Insurance

You probably have heard how expensive long term care insurance is. And it is.

Premiums could range from $1,000 to $3,000 a year. But that may still be less expensive than paying your own way at a nursing home or other facility.

Still, there are some strategies to reduce the costs of those premiums. The most important factor is to buy your policy when you’re younger.

Another thing, and this may be obvious, is that you should buy your policy while you are in good health. Health history can affect premiums by as high as 150 percent. And if you have a serious medical condition, you may not find coverage at all.

You may be able to get a discount if you and your spouse are applying at the same time. The discounts can range from 10 percent to 35 percent a year. Siblings applying together may also receive discounts, and, in some cases, so can long-term committed couples.

You should also check with your accountant as to the deductibility of the premiums as medical expenses on your income tax returns.

You may be able to save some money by paying your premium annually rather than monthly.

And finally, you may be able to design your benefits so that your premiums are lower if the waiting period is longer.

While the premium for long term care insurance is expensive, there are strategies to hopefully help lower those costs.