Learn how to save money on long term care insurance.
There are many ways to save money on long term care insurance. Long term care insurance companies offer several premium discounts for couples and partners and even extend these discounts to people living in the same home. Additional discounts are given for preferred health and employers and association often provide employee or member only discounts as well.
In addition to saving money on long term care insurance premiums, policy holders can also save money through long term care insurance plan design, accelerated pay options, and in prudent selection of insurer.
Policy holders can save even more money through efficient application of the tax code. Uncle Sam provides a variety of tax deductions for individuals and businesses buying long term care insurance. With new provisions of the Pension Protection Act going into effect on January 1, 2010, individuals can now use tax-deferred gains from cash value life insurance and annuities to pay for long term care insurance tax-free.
Lastly, tax qualified long term care insurance plans provide tax-free benefits for qualified long term care expenses. Add it all up together and you can save from 5% to 50% or even more on long term care insurance.
Age and health are the two biggest factors in the cost of long term care insurance. Substantial discounts are available to those who buy long term care insurance when they are still young enough to qualify for the most favorable long term care premiums for their family.
Age and health are the two biggest factors in the cost of long term care insurance. Substantial discounts are available to those who buy long term care insurance when they are still healthy enough to qualify for the most favorable long term care premiums for their family including preferred health discounts of up to 15% per applicant.
Since individuals with a spouse/partner are likely to receive some long term care from their mate, substantial discounts up to 40% are available to those who are married or have a life partner. Some long term care providers even provide discounts for two family members living within the same household.
Many employers now provide a group long term care insurance plan as a valuable employee benefit. Some provide these long term care plans as a voluntary benefit while others share in the cost or provide a nominal level of coverage. Some group long term care programs have simplified underwriting and up to 5% discounts to plan participants and their family members.
Some professional associations, trade groups, unions and member-based programs offer long term care insurance as a valuable member-only benefit that can provide up to a 5% discount on long term care plan premiums to active members and their families.
Inflation protection is one of the most important components of good long term care plan design. Many of today’s long term care providers provide a variety of inflation protection options that can help save up to 15% on your long term care insurance premiums.
Many who buy long term care insurance do not know that they can realize substantial savings of up to 15% by accelerating the payment of their policy. A saying up a long term care plan in ten years or to age 65 also protects the policyholder from future premium rate increases.
Buying a long term care plan with an unlimited lifetime benefit is very expensive and rarely a prudent purchase. Those who buy a long term care policy with a greater dollar benefit in a shorter time period get the most bang for their long term care buck and realize substantial savings of 40% or more on their long term care insurance premiums.
Some long term care buyers are tantalized by relatively inexpensive insurance premiums from a less than top-rated insurance company. Unfortunately buyers of these long term care plans are setting themselves up for costly premium increases due to faulty assumptions or poor investments on the part of the insurer. Those who buy a long term care plan from a financially solvent provider with reasonable premiums will realize substantial savings over the life of the policy.
Uncle Sam allows policy holders to pay long term care premiums with existing tax-deferred annuity or cash value life insurance policy without paying taxes on the distributions. This also applies to immediate annuities set up to pay for long term care insurance premiums. Paying for a long term care policy with tax-free dollars for future tax-free benefits provides up to 40% savings over the life of a long term care policy.