If you’re like most other people, you’re probably looking for a way to save money. If you’re looking more closely at your budget, you’re probably wondering about where costs can be cut, and where savings can be made.
Cutting anything that isn’t an absolute essential from your expenditure is the first course of action. However, deciding which expenses are vital — and which ones are not — can be a challenge.
You may be wondering whether you can just forget about long-term care insurance. But this isn’t something that you should scrimp on — especially if you’re approaching retirement.
The cost of paying for long-term care in the future could mount up to far more than the premiums for your insurance policy, so overlooking this coverage can be a big mistake. The good news is there are several ways in which you can reduce the amount you spend on your long-term care coverage. Here are four of the best:
Buy Your Policy Early
The best time to buy your insurance policy according to experts is between the ages of 55 and 60. This is because people within this age bracket are generally relatively healthy and can, therefore, benefit from lower premiums. The American Association for Long Term Care Insurance states that premiums for a person aged 65 years could as much as double those offered to someone aged 55, so it makes sense to buy early.
Apply Alongside Your Spouse
If you’re married or have a live-in domestic partner, you could receive a discount on your premiums. If you check out most providers long term care insurance info, you’ll find that the majority will offer discounts of up to 30%, with partial discounts available if just one of you is approved.
Another way to save money is to share a long-term care policy with your domestic partner or spouse. If you take out shared insurance policies, you will be able to combine the benefits so that you can double the cover your enjoy with no need to purchase further individual cover. If there’s a significant age gap between you and your spouse, this is an especially good course of action.
Choose Your Benefits Sensibly
There are ways to save money by choosing the benefits that your policy pays out wisely. If you have the facility to fund your own care for several months, you can save money by increasing the length of time you’ll need to wait for the policy to payout; this results in lower premiums. Not only that but if you can pay some of your costs yourself, you can reduce the policy’s daily maximum benefit in return for a lower premium. A third way in which you can save is by reviewing the type of inflation protection the policy provides. If you have sufficient income or savings to cover cost increases in healthcare over time, the inflation protection element can be removed from the insurance policy, reducing premiums still further.
By following just a few key tips, you’ll find it simpler than you thought to lower the cost of investing in a long-term care policy. Best of all, you can do it with no need to forgo coverage and the protection that it provides.
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