Looking at Long Term Care Insurance

Have you come to think of the day you will spend more than half of your retirement savings in a nursing home? You probably don’t want to think about it, do you? With today’s long term care costs range from $75,000 a year, you may desperately end up impoverished when the drags on too long, say two to five more years.

Buying insurance for long term care is the best way to safeguard your lifetime savings from undesirable bills. Although long term care coverage isn’t dirt cheap, it provides many benefits to face all the challenges of retirement. And through efficient long term care plan, you can get sufficient coverage at much affordable amount. Here are some ways to cut your LTCi premiums:

Shorter Benefit Period

It is not advisable to get lifetime coverage since premiums are very costly. In a study, Milllman, an actuarial consulting firm, found out that as little as 8 percent of 70-year-old policyholders will need coverage for more than five years. In fact, the average national rate on nursing home stay is two and a half years. However, if chronic disease runs in the family, it is advised to buy coverage for more than two years.

Shared Care

Shared care can benefit you and your spouse. A separate policy is usually 10% higher than combined policy. If, for example, you purchase five-year shared-care policy, you may get 10 years to split between you.

Inflation Protection

This rider may increase your premiums, yet it is worthwhile. This boosts the daily or monthly benefit to keep pace with the inflation. The types of inflation may include

· 5% Compound Inflation Protection

· 5% Simple or Equal Inflation Protection

· Future Purchase Option

· Consumer Price Index (CPI)

· 3% Compound

· 4% Compound