The expense of insurance can be overwhelming for those who have not planned properly; starting early can help minimize the long term care insurance costs. As there are five types of long term insurance, choosing the type of care you want early can protect you from not having much of a choice down the road. By planning and selecting the type of insurance you receive, as well as when and where you receive it can help minimize your costs and maximize your benefits.
Consider: Partner Discounts
You may not be able to state with complete certainty whether or not your spouse or life partner will be around when you need long term care, especially if you are planning ahead significantly. But if you’re married or in a long term relationship, it’s worth considering partner discounts when you try to minimize long term care insurance costs. Many companies will offer a discount for partners and if one person needs more than their own benefit period, they can use some of their partner’s benefit period.
Consider: Money Pool
With long term care insurance, you pay for a specific amount of money that you can draw from; your benefit term and your daily benefit amount will determine your money pool. Ideally, plan for an estimated amount you would need per day and the length of time you’d like to have access to the money. For example, a person could have a $250 daily benefit and a 6 year benefit period – this would mean they have access to $547,500. If when drawing on the insurance you use less than the daily benefit, the benefit period can be extended. Be aware, when you price long term care insurance costs, that where you live can greatly affect the rates available.