Whenever people are asked about their long term care (LTC) plan, most of them would say that they have thought about buying a long term care insurance policy but were taken aback by the expensive long term care insurance premiums.

Long term care insurance (LTCI) is really expensive for older folks and those with pre-existing conditions as they are subjected to higher annual premiums. But if you buy an LTCI policy at the age of 40, or even younger, your premium won’t be a burden to you.

Apart from age, there are other factors that will determine your LTCI annual premium and one of these is your policy’s maximum benefit amount. Nobody is telling you to go for the lowest daily benefit amount but before signing a policy with an extremely high benefit amount, check out the rates of nursing homes, assisted living facilities and home health care providers in your area.

If, for instance, the nursing homes in your area charge an average daily rate of $215 make sure that the maximum daily benefit amount of your policy won’t go below this figure. You can opt for partial nursing home coverage to reduce the price of your policy, perhaps 50% of the nursing home cost, but make sure to continuously strengthen your nest egg so that you can pay the excess of the bill which is not covered by your insurance.

According to LTCI experts a policy’s benefit period is also an important determining factor of the premium. The shorter your benefit period, the smaller is your annual premium. Perhaps a three-year benefit period will be enough since the average stay of elderly folks in a nursing home is, after all, two and a half years according to nursing home personnel.

More Ways to Cut Down Long Term Care Insurance Premiums

Before purchasing an LTCI policy it is wise to discuss your healthcare needs and budget for the policy with a licensed insurance agent who is affiliated with major LTCI carriers.

Some people end up overspending on their annual premiums because they buy a policy hastily before they have even identified their needs. Your current health condition and your family’s health history will help you decide on the type of care that you will most likely require in the future.

Choose your policy very well as this will also dictate your annual premium. Reimbursement LTCI policies, which reimburse the insured the total amount of his expenses on care up to his maximum daily benefit, offer bigger savings on the premiums.

Meanwhile, the indemnity LTCI policy will cost more on premiums because this type of policy pays a fixed daily benefit amount regardless of one’s actual expenses on care.

Your policy’s elimination or waiting period will also determine the amount of your annual premium. Insurance companies that market LTCI policies allow buyers to choose from 30 to a 180-day waiting period. You can, however, opt for no elimination period provided you are ready to fork out more money for your annual premium.

If you are after strategies in reducing long term care insurance premiums there is definitely a lot, but you can’t go through all these alone lest you compromise your future healthcare needs. Get help from your trusted LTCI representative.