Depending on how long you live, you may need some form of long-term care.
An estimated 70% of those who live to age 65 will need assistance as they age.
That could mean living in a nursing home, hiring home health aides and everything in between.
Long-term care insurance can be a way to offset the costs, but even that can get pricey.
Weve put together what you gotta know when it comes to saving on long-term care insurance.
What Is Long-Term Care Insurance?
Make that a private room, and youll pay $9,733 a month.
Along-term care insurance policytakes care of some of that cost.
As with other kinds of insurance, youll pay premiums in exchange for peace of mind.
But many long-term care insurance policies put restrictions on when and how youll be covered.
Youll also likely have a limit on the length of time the policy will pay out.
These restrictions mean long-term care insurance isnt always the best option.
Daniel J. Adams, MBA, CFP and CLU, is an expert contributor and reviewer forAnnuity.org.
For someone on a budget, that can be costly.
But dont cancel your policy just yet.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
Instead, you’ve got the option to tweak the policy.
Here are a few tips for saving on long-term care insurance.
Start Early
The younger you might purchase long-term care insurance, the better.
However, Scott Maibor ofSenior Benefits Boston, cautions against overbuying coverage.
Keep in mind other income streams from pensions, Social Security, etc.
The policy benefits do not need to cover 100% of the cost.
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2.
Participate in a Group Policy
Some employers offer long-term care insurance as a benefit.
If that isnt an option, check into taking out a policy through an organization.
Not all group plans are cheaper than those purchased individually.
As with any policy, the bigger the potential payout, the higher your premiums will be.
Some insurers offer options to lower premiums by adjusting the benefit period or daily benefit amount.
But insurance is only one option.
Here are a few alternatives to consider.
Investing
Long-term care insurance isnt an investment.
Youre taking out a policy to protect your assets if you do eventually need health care assistance.
But it’s possible for you to take the money youd put into premiums and invest it.
Self-Insuring
When it comes to long-term care insurance, youre playing the odds.
Yes, theres a chance youll never need long-term care.
However, if you do need it, you might regret not having coverage.
But there are some scenarios when it isnt worth the premiums youll pay.
Wray suggests you skip long-term care insurance when you have limited assets or income and mayqualify for Medicaid.
He said there are two types of long-term care insurance.
But the other jot down of policy is a decent option.
The other policy is new to the market, and its alife insurance policy, Simasko explains.
If you die, the family gets the benefit.
Whatever is left over goes to your family.
Saving on long-term care insurance can vary from person to person.
Stephanie Faris is a professional finance writer with more than a decade of experience.
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