What factors determine the cost of long-term care insurance?

You can control the cost of long-term care insurance. If you purchase protection while you are younger and in good health the premiums can be very affordable. You can also control the cost by the benefits you choose. A good rule of thumb is that the annual premium you pay should be less than the cost of just one month of care!

Premiums are determined by the following:

• Your health
• Your age
• Your marital status
• The benefits you choose
• Any discounts you are eligible for
a. Group discounts through employer
b. Joint policies can have up to 15% discounted premiums

• Your premiums may be reduced indirectly by the fact that all or some of your premium is tax deductible if you are able to itemize deductions.

Also consider that it is false to think that you can save money spent on premium if you just wait to purchase protection. The longer you wait the more premium you will pay over your lifetime. Someone 50 years old who decides now to wait just five years will pay an additional $12,374.85 in premium over the lifetime of a long-term care policy.

In addition, there is a risk that this 50 year old will not be in good health in 5 years – either becoming uninsurable or having to pay much higher premiums.


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