Save money on long term care insurance by accelerating the payment of policy premiums.
Most people who buy long term care insurance pay their premiums annually on a lifetime basis. In other words, they pay a yearly premium each and every year until they need long term care. Once they go on claim, they no longer are responsible for paying long term care insurance premiums. Annual lifetime premiums are a convenient way for most applicants to fund their long term care policy.
One way to save money on long term care insurance is to accelerate the payment of your policy. Most long term care insurance companies allow you to fully pay a policy in one, five, or ten payments – or until you’re age 65 – and then you’ve got a fully paid up long term care insurance policy. At this time, your long term care insurance policy is completely funded and you no longer have to pay insurance premiums.
Long Term Care Insurance Accelerated Pay Options
- 10-Pay – A 10-pay option allows you to pay your long term care insurance premiums over a period of 10 years, at which time your policy is paid up.
- Pay-To-65 – A Pay-To-65 option allows you to pay your premiums until you reach the age of 65, at which time your policy is paid up.
Although accelerating the pay of your long term care insurance requires significantly larger premiums, many choose a limited pay option so their policy is paid up at the time they retire or shortly thereafter. In addition to having a paid up long term care insurance policy they don’t have to budget for in retirement, they have also locked in premium savings since insurance companies cannot raise rates after the final payment on your policy.
Those with the income and savings to accelerate the payment on their long term care policy can save 10% or more long term care insurance.
