To determine a price we need to first determine how much, or rather how little of it you need. We have been doing nothing but LTC planning now for 25 years and we’re happy to share with you 5 tips that will help you make Long Term Care Insurance cost less!
Here are 5 Tips to Consider to Make Long Term Care Insurance Cost Less
- The number one tip is to take into consideration is how lifestyle will change when care is needed – and how your household budget changes as well. When someone needs care, they will most likely not be able to drive anymore which eliminates the need for a second (or third) vehicle. It also eliminates the need for the 4 wheelers, motorcycle, snowmobile, camper, boat, etc., etc. Thus a portion of income now used for fun things, can be redirected towards the costs of care. There will also be less fun activities such as golf, skiing, trips to Branson, cruises, football games, even less dining out if getting there and accessing their rest room becomes difficult.
- Number two is – you probably have some savings. Without touching the principal you can use the yield, or interest the account generates to pay some of the bills for care. Once all of this is taken into consideration most people find they need far less insurance to make up the shortfall than they initially thought.
- Number three is to be sure you are using local costs, the median cost surveys published nationally are a long way off from the actual costs of care in Wisconsin. The purpose of the insurance is thus twofold, to relieve family of the 24 hour a day job of caregiving, and to preserve assets so you do not spend down to Medicaid impoverishment. Medicaid is a government welfare program that will pay for LTC when you are completely impoverished. Facilities do not like to accept it as it pays far less than the cost to care for you. Thus you may be searching for a place to accept you if on Medicaid.
- Fourth is now that we have determined how much, or how little of it you need, your age will determine which company is your best choice. Rates vary considerably between companies. Some are a better deal at younger ages while others might be better if you are already in your 60’s (and can still qualify to purchase it).
- Lastly, the rate class you are assigned can make a large difference in pricing. What is standard with some companies is preferred rates with others. Once all of these things are determined, we can give you prices. In most cases the amount of money one person would spend for one year of care, if put into an interest bearing account – will earn enough interest to pay for insurance for both of a couple.
At TheLongTermCareGuy.com we have access to nearly all the insurance companies that offer this insurance. We can comparison shop for you. Expert guidance will save you money. Deal with experts who know this field and how to best help you plan. We can even help those who have been declined for this insurance in the past or are already in care (think of your parents). Give us a call at (920) 884-3030 to schedule a time to investigate options together.