There are two ways to find out about nursing home insurance cost. The first is to go online and request quotes from different companies. You can also ask your employer for a quote on a policy. Most companies require that you begin to collect premiums at a certain age in order to buy this coverage, so it makes sense to shop around.
When you first get the quote, look at it closely to make sure that there is a long-term insurance requirement. Some companies only allow two years for coverage before a long-term requirement kicks in, so keep that in mind when reading the fine print. Long-term nursing homes cost about $3,500 annually when you purchase it, so it’s really not cheap. However, it is still much cheaper than buying a policy that will expire once you turn sixty. The rates increase slowly as you age, so it is still significantly cheaper if you begin the coverage when you’re younger.
There is one other way to lower your nursing home insurance cost. Certain companies offer what are called “short-term benefits.” These can pay your premiums for up to three months or less. This means that you have less of a benefit period, but your premiums are lower for the same amount of coverage. The shorter elimination period is often only three days, but it can be a bit longer if the company you purchase the policy from has a lot of short-term customers.
If you purchase coverage that has a shorter benefit period, it can also help you to pay less expensively for your premiums. This is because you don’t need to pay as much over time. Also, there is less of a risk for the insurance company of giving out too much money in the event of a payout. In other words, if they believe their customers are less likely to need constant nursing home care, they won’t want to give out as much money in the beginning. Shortening the benefit period makes it less expensive in the beginning, allowing them to make up the difference in lower premiums by having fewer claims.
Before you purchase any type of coverage, you need to speak with an experienced independent agent. They can be a tremendous resource when it comes to finding the most affordable policy for your loved one. They also know which companies are more likely to offer long-term care insurance at good rates. This is because many companies have to compensate for the high costs of health care on a long-term basis. Therefore, they pass the savings onto the customers. However, an independent agent can save you money by helping you find the best policy for your loved one at a price you can afford.
Speaking with an adviser also gives you time to examine your options when it comes to paying for your loved one’s future care. Many people choose to postpone buying a nursing home insurance policy to give their financial adviser time to prepare the necessary paperwork. This can actually be quite harmful because the adviser may recommend a policy that has more costly clauses than you originally intended.
For example, some health insurance policies have a ten-year lifetime maximum on coverage… or else they require an extra yearly premium payment…or some other form of annual cost increase. When you talk with an adviser who is familiar with nursing homes, they can help you negotiate these terms, knowing exactly what you can afford. This can prevent you from agreeing to a policy that will only provide coverage…or a lower amount of coverage…for a short period of time. The adviser can help you find a balance between financial need and the financial impact on your loved one.
Nursing home insurance companies often ask if there is any way to “cure” the policy…or make any changes to the contract prior to the purchase. Unfortunately, without the guidance of a personal representative from an insurance company, it becomes nearly impossible to change anything in the contract. However, the advice of someone who has been in this situation can help. An adviser may be able to get both parties to agree to different terms, so that the long-term care insurance meets your family’s needs at a price you can afford.