Many individuals who are interested in retirement planning are looking for ways to make long term care insurance affordable. After all, the cost of long term care is staggering.
At current rates, individuals could spend up to $72,000 per year on assisted living, or up to $90,000 per year for private nursing home care. These costs will continue to increase each year due to inflation.
Long term care (LTC) insurance provides peace of minds for families by transferring the risk to an insurance company. It offers individuals and families more options to pay for care. When you choose home care, assisted living, or nursing come care, it becomes less of a financial decision and more about your needs and preferences.
Even so, some may consider long term care coverage expensive. Individuals or spouses who face current care challenges with elderly family members understand the cost and the burden of care. Those who haven’t experienced caregiving first hand may question if they’ll use it.
Long term care policies can be designed to fit your current budget and provide access to benefits when you need care. The following are a few tips to help make long term care insurance affordable.
Buy Coverage While You’re Young and Healthy
Long term care insurance premiums are based on your age and health. The younger you buy, the lower your premiums will be.
If you’re in great health, many insurance companies reward you with additional discounts. Take advantage of shopping for coverage while you’re young and healthy to receive the highest discounts.
Buy Coverage with Your Spouse
Spouses who are approved for coverage will receive higher discounts. These discounts could save you up to 30% in premiums resulting in significant savings over the lifetime of your policies.
Special options are available for spouses including the option to add Shared Care. This rider allows spouses to share their benefits. If one spouse exhausts their policy, they can dip into their spouse’s policy for additional coverage.
Essentially, this rider can double your benefit and helps answer the question of, “What if I don’t use it?” Even if you don’t use it, your spouse has access to it if they need it.
Adjust the Inflation Protection
A large sum of money today may not last long 20 years from now when you need care. Inflation protection helps grow your benefit to keep up with the rising costs of inflation.
Inflation protection such as 5% compound is typically not budget-friendly for the average consumer. Insurance carriers are now providing affordable inflation options to help grow your benefit over time.
Work with a long term care specialist to learn more about inflation options and choose the one that works the best for you and your budget.
Long term care insurance helps you save on out-of-pocket expenses while protecting your assets. Interested in learning more ways to save? Give me a call today for a free planning consultation and a personalized quote.