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The premiums
you pay for LTC Insurance will depend on your age, the benefit features
you select, the discounts you are eligible for, the insurance company
you choose, and your health at time of purchase. As you can see,
there are a lot of variables that determine the cost!
We can't tell you how much your premium would
be without consulting with you to determine which options are appropriate
for you. You have a lot of control as to how much the policy will
cost. There are hundreds of different prices for each individual
person.
Many people mistakenly think that since they
won't use this policy for years that they would save money by waiting
to purchase it until they are older. This is incorrect! The older
you are when you purchase a policy the more you will pay in total
premiums. This is due to several factors:
- Your premiums will be based on your older
age.
- You will need to purchase a higher daily
benefit as the cost of care will have increased.
- You may have health conditions at that point
that could increase the premium.
- Worst of all, if you wait to apply when
you are older you may be uninsurable!
Famous author, Suze Orman helps put the cost
of LTC Insurance into perspective when you are evaluating purchasing
a policy. "Regardless of your age at the time of purchase,
the total cost for the LTC policy will be less than the cost of
one year in a nursing home." Suze Orman, You've Earned It, Don't Lose It: Mistakes You Can't Afford to Make When You Retire - 1998.
You might be asking yourself, why should you
pay for something that you may never use? According to Suze Orman,
when you purchase LTC Insurance, you are doing the exact same thing
you do when you purchase fire or auto insurance- you are protecting
yourself against something that could happen eventually.
Tip: It is extremely important to note that
with LTC Insurance there can be a change in your premium if there
is an across-the-board increase for all of the policyholders within
the state, region, or county who have purchased the same policy.
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