If long term care insurance (LTCI) policies are sold at a fixed price all you have to do is buy it over a counter, but you need a long term care quote because the price of each LTCI policy varies and yours will depend on your age and personal needs.
Insurance companies marketing LTCI policies collect high annual premiums from the policies of older policyholders and those with preexisting conditions. Meanwhile, those who managed to buy their policies at a younger age pay their insurers less than a thousand dollars in premium.
People have been told time and time again that buying an LTCI policy at a younger age is better because this will allow them to save on their premium. Although this is partly true, one’s annual premium would still depend on his choice of coverage.
For example, a 50-year-old buys an LTCI policy which stipulates lifetime coverage, 5% annual compound inflation protection, and a 30-day elimination period. With all these ideal components thrown into his policy he will naturally pay a very high premium every year.
On the other hand, another 50-year-old individual buys a policy with a three-year coverage, 90-day elimination period, and a 5% compound inflation protection so his premium is much less because he cut down his maximum benefit period and lengthened his waiting period.
By requesting an LTCI quote you will be able to adjust the variables of a potential LTCI policy so that it conforms to your budget without compromising your coverage.
What Your Long Term Care Quote Should Contain
Most U.S. states require insurance firms that sell LTCI policies to offer comprehensive LTCI policies instead of those under two separate categories which are either home health care policies or facility-only policies.
If that’s the case, the LTCI quotes that you’ll be gathering should include coverage for in-home care that is usually 50% or 70% of the total coverage that you’ll be getting from an LTCI facility.
Note that a policy with a very high maximum benefit amount, longer benefit period, longer elimination period or waiting period, and a 5% annual compound inflation protection will have a higher quote. Though ideal, not everybody will need such policy.
Ask a licensed LTCI agent to guide you as you request your LTCI quotes. But don’t put your trust on just anybody who claims to be an expert in the LTCI arena. Check the person’s tenure and his affiliation. If he works for the top LTCI carriers then rest assured that he can help get you acquire a coverage that is suitable for your needs and budget.
Besides, a seasoned LTCI agent has an eye for long term care quote details so he can tell if the quotes that were provided to you are for a tax qualified policy or not. Unlike non-tax qualified LTCI policies, a tax qualified one will entitle you to big tax deductions that is why buyers are encouraged to secure this type of policy rather than those that are non-tax qualified.