The Advisor's View of Long-Term Care Planning

How to make LTC insurance more affordable - the 3 biggest factors

Posted by LTCI Partners | Nov 5, 2013 10:16:00 AM

For those who are shopping for LTC insurance, they know first year premiums are substantially higher than they were two years ago.  The reason - updated actuarial assumptions assuming lower interest rates, lower lapse rates and higher morbidity.

With the higher prices, what are the three factors that can help save premium?

1) Buy as a couple - there are significant discounts for couple purchases.  Couples tend to delay the need for accessing benefits as they care for each other.

2) Buy young and healthy - Discounts for good health are significant.

3) Choose "buy as you go" inflation protection.  Automatic inflation protection is extremely expensive.  Instead, consider the flexibility of guaranteed future purchase options instead.

Here's a recent Kiplinger's article about the factors.

Check out Kiplinger's Article on "right-sizing" LTC Insurance

Topics: Advice articles about planning

Written by LTCI Partners

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