One of the biggest challenges in planning for retirement is finding a comprehensive long term care coverage that still falls within your budget. No one wants to overspend on policies, but some still pay for services that they might not even need in the future. To keep this from happening, you must start by asking yourself one question: “How much long term care do I need?”
Presently, the need for long term care is on the rise. With the growth in the population of seniors in the country, the demand for long term care services is expected to increase in the coming years. Because the majority of these individuals are likely to require long term care, it would be a smart move to ensure coverage through an insurance policy.
Purchasing long term care insurance is deemed by many as the best way to get protected against long term care expenses. Research shows that 69% of those who are covered by this type of insurance are very satisfied or somewhat satisfied with the cost of their premiums.
It is important to note, however, that this kind of coverage can be hefty on anyone’s budget if not done correctly. The good news is you can get the protection you need without crumbling your financial standing. Here’s how:
If you want to get the best deal when it comes to long term care insurance, do not commit to the first policy offered to you. It is essential to shop around for rates as companies charge differently even for the same plan. Prices can vary by as much as 60-90% so take your time in comparing rates. Save yourself from the trouble of paying massive sums on a policy that you can get for less.
Procrastination is a no-no if you want to reduce the cost of your premiums. Age is highly relevant when it comes to the state of your health. That means that if you buy when you are still young, your health is still likely in its prime. That could mean huge savings on your end as insurance companies offer discounts to those who purchase without any underlying health condition.
More so, these discounts are locked in; therefore, it will not be taken away even if your health becomes problematic in the coming years.
Limit your coverage
Nobody can precisely determine how long their care requirements will be. Thus, it is just normal to assume that a lifetime plan is the best choice. However, its premiums are likely to be high, and if you are on a budget, it may not be the best option for you. If you want to reduce the cost of your premiums, you can limit your coverage instead of getting a lifetime plan.
Consider getting a shared plan
If you are married or in a committed relationship, then you and your partner can opt for a shared care plan. It works by pooling all your benefits so that the two of you can share it.
For instance, both of you have signed up for a three-year plan. When combined, that is six years worth of benefits that either of you can dip into. Say your partner exhausted four years for care services. In effect, that leaves you two years worth of benefits to claim.