New Long Term Care Insurance Survey Suggests Premiums Not as High as Public Perceives
Posted Jun 09 2010 6:00am
Over a third (35.4%) of individuals who recently-purchased long-term care insurance protection pay less than $1,499-per-year according to a new report issued by the American Association for Long-Term Care Insurance.Among buyers under age 61, 43.5 percent pay less than $1,499 annually, whereas 73.6 percent of buyers between ages 61 and 75 pay $1,500 or more.
The organization analyzed data on some 93,500 new long-term care insurance buyers.Among buyers under age 61, over one-fourth (28.1%) paid less than $999-per-year.Fewer than one in 10 (9.3%) pay $3,500 or more annually the report notes.
Age at the time of application plays an important role in determining the cost for long-term care insurance the Association study reports.While 41.5 percent of buyers under age 61 pay between $500 and $1,499-per-year, only 20.8 percent of buyers who are ages 61-to-75 pay within this range.
The Association fsuggests the following tips that can help you significantly reduce the cost of insurance coverage.
1.Leverage Your Good Health:Insurers will require you meet certain health qualifications to obtain coverage.Discounts are provided to those in good health and 62 percent of applicants between ages 40-49 qualified in 2009.The percentage drops to 46% for ages 50-59 and only 38% for ages 60-69.Once obtained, the preferred health discount is not lost when your health changes.
2.Right-Size Your Coverage:Some long-term care insurance is always better than none.Factor in other sources of income such as Social Security, pension and 401k plans that can pay costs and allow you to add money-saving options such as a 90-day deductible (Elimination Period) or consider a limited-pay plan with a Shared Care option that allows two spouses to share a common benefit pool.
3.Compare Coverage:Each insurer establishes it's own rates, health standards and available discounts.As a result, virtually equal protection from two highly-rated insurers can vary by between 30 and 80 percent.Ask your insurance professional if they have access to policies from just one or from multiple insurers.
I have to say that I was surprised by this report as my own research into buying coverage for myself suggests that I would pay well more and I am someone who is in good health.
So as always do your homework. Remember that this report is issued by an association that wants to promote the sale of this insurance. That said I am in favor of it because at the end of the day we are each going to be responsible for many of these costs in the future. The current financing of long term care is unsustainable.
The organization analyzed data on some 93,500 new long-term care insurance buyers. Among buyers under age 61, over one-fourth (28.1%) paid less than $999-per-year. Fewer than one in 10 (9.3%) pay $3,500 or more annually the report notes.
Age at the time of application plays an important role in determining the cost for long-term care insurance the Association study reports. While 41.5 percent of buyers under age 61 pay between $500 and $1,499-per-year, only 20.8 percent of buyers who are ages 61-to-75 pay within this range.
The Association fsuggests the following tips that can help you significantly reduce the cost of insurance coverage.
1. Leverage Your Good Health: Insurers will require you meet certain health qualifications to obtain coverage. Discounts are provided to those in good health and 62 percent of applicants between ages 40-49 qualified in 2009. The percentage drops to 46% for ages 50-59 and only 38% for ages 60-69. Once obtained, the preferred health discount is not lost when your health changes.
2. Right-Size Your Coverage: Some long-term care insurance is always better than none. Factor in other sources of income such as Social Security, pension and 401k plans that can pay costs and allow you to add money-saving options such as a 90-day deductible (Elimination Period) or consider a limited-pay plan with a Shared Care option that allows two spouses to share a common benefit pool.
3. Compare Coverage: Each insurer establishes it's own rates, health standards and available discounts. As a result, virtually equal protection from two highly-rated insurers can vary by between 30 and 80 percent. Ask your insurance professional if they have access to policies from just one or from multiple insurers.
I have to say that I was surprised by this report as my own research into buying coverage for myself suggests that I would pay well more and I am someone who is in good health.So as always do your homework. Remember that this report is issued by an association that wants to promote the sale of this insurance. That said I am in favor of it because at the end of the day we are each going to be responsible for many of these costs in the future. The current financing of long term care is unsustainable.