Long term insurance is the terminology which most people did not know just a few years ago but now it has become a well known fact. People had to face distress and hard times during their retirement and physically handicapped days of old age. This scary dream was erased from the minds of people after with the help of introducing long term care services as well as insurance. As the time passed, more and more people grew to the age when they actually needed the policy and this resulted in a significant increase of policy rates. People had to face insanely higher premiums on these policies which resulted in repelling others from a thought of it.
What is long term insurance?
Unlike simple health insurance, the long term care insurance definition says that it provides coverage for home health care, nursing home care, adult day or personal care for people who reach and pass the age of sixty five. These people have serious conditions which make them disable for life time. This insurance does not only provide charges for nursing care but it also provides a specific amount of money on daily basis. The amount of this money which you will get everyday depends upon the type of your insurance policy. Following are the things which can affect your long term care insurance cost:
- Your age at the time of purchasing this policy
- The maximum amount of money which you want to get from a specific policy on daily basis
- Number of days or years for which the policy will pay you that amount of money
- Choosing of any additional benefit will also affect your overall cost of policy. These benefits include the increase of daily payment with an increase in inflation rate.
Can anyone get long term insurance with poor health condition?
This is the most sought for question regarding long term insurance policy. People who are in poor health condition and receiving long term care services then you cannot qualify for any long term health insurance. Some companies may provide you such a policy but you will have to pay extra – ordinary amount of premiums for this offer.
One important note for insurance purchasers is that every insurance company has different policy regarding the payment of your money. A specific company will pay a specific amount of money on daily basis for two years or three years. There are also some exceptions in this case which do not imply limits of time on his policy.
Average cost for long term care policy:
No one should step back from purchasing a long term insurance policy just due to cost. All the policies are not same and you may get the right and cheap policy for yourself if you research properly. The factors which change the amount of your insurance premiums are given above. Any change in those factors can let you find affordable policy.
Compare long term insurance rates:
A secret behind getting cheap long term insurance policy is to compare the long term care insurance rates from different companies. You can find a company which does not charge high amount of money in your condition. You must analyse your health condition and age before comparing quotes from different long term insurance companies.
What is the ideal age which can cost less for insurance premium?
You may be thirty or a little above thirty while reading this but it is natural to worry about your future after reading about such a scary things like physical disability. You may stick your mind in thinking about purchasing the insurance policy because there is no one to take care of you right now. The important part is that the time has not arrived yet. Although it can sounds attractive to purchase such a policy right now because the cost will be low but the number of years of premium payment will get high and the accumulated cost will make a mound of money. However, there are also some people who over look the importance of long term insurance policy and contact long term care insurance companies even after crossing 65. According to recent researches, the best age to purchase long term insurance policy is between 50 – 65 years of age.
Latest price for long term care insurance:
Surveys are conducted to find out the latest prices offered by different insurance companies for long term care insurance. According to some recent surveys:
- The amount of insurance premium, in different organizations, differs from 60 to 90 percent
- Rates will also be different for different states of residence therefore it is important to inform you agent if you have two residences
- Each insurance company has different formula to calculate your insurance cost but they also offer discounts. You can use these discounts to significantly lower your insurance premium
Cost of long term care insurance for people of age fifty five ranges from $1500 to $200 per year. However the cost for same policy at the age of 65 will be at least $2600 but it can amount to $4500 in different companies.
Difference between the cost of agent and broker:
Here is the fact about the amount of long term care insurance premiums which is commonly unknown to public. An insurance agent will only be able to offer you policy of a single insurance company. However, a broker will have quotes from different organizations. You may get the best policy for best price from an agent but it will never worth the comparison which a broker will be able to offer you. Comparison can save you from sever regrets because a policy may be the best one in market against a specific price but you must purchase the on which suits your needs and only a broker can show you a number of policies to choose from.