Lower Long Term Care Insurance Cost By Raising Deductible

The cost of long term care insurance can be reduced by as much as 40 percent annually merely by selecting a longer deductible period.

According to an American Association for Long Term Care Insurance analysis of policies offered by leading insurers, the selection of a deductible period, technically referred to as the Elimination Period, plays a significant role in determining the cost of long term care insurance protection.

The trade group studied costs for policies purchased by a typical couple where both spouses are age 55.  Selecting a 90-day deductible period reduced yearly premium costs between 12 and 15 percent according to the AALTCI report.   Longer deductible periods, the study found, can reduce yearly costs by as much as 35-to-40 percent.

“To lower costs of our car, home and even our health insurance many people select a deductible,” explains Jesse Slome, one of the nation’s leading long-term care insurance experts.  “They understand that if a claim occurs, they will have to pay some of the cost before their insurance kicks in and they have savings and other forms of income which they can access.”

Slome notes that too many consumers believe long term care insurance needs to pay for what he calls ‘first dollar – last dollar coverage’.   “When they see how these ‘pay every possible claim’ policies cost, they are shocked and decide that all long-term care insurance is too expensive.”

The trade group advocates considering a co-insurance approach to long term care insurance planning.  “It’s likely you can afford to pay 90-days of claims especially since many involve just nominal amounts of care,” Slome says.  “Selecting a 90-day deductible compared to a 30-day deductible will reduce your annual cost by 12-to-15 percent.”

According to the study, selecting a 365-day deductible versus a 30-day time frame will reduce the cost by as much 40 percent.  “A one year deductible is not permitted in all states and both the premiums and savings vary from one long term care insurance company to another,” Slome adds.

To receive a no-cost comparison of long term care insurance costs or to connect with a designated specialist, a member of the American Association for Long-Term Care Insurance, visit the organization’s website or call 818-597-3227.

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