An increasing number of area baby boomers are purchasing long-term care insurance according to Greg Seal of C-Hall Corporation. The Denver insurance planning professional noted that some 400,000 individuals purchased long-term care insurance protection last year according to a just-released national study.
The overwhelming majority (84%) of individual buyers in 2008 were younger than age 65 according to the study conducted by the American Association for Long-Term Care Insurance (http://www.aaltci.org/) the national trade organization. Some 8.2 million Americans now have long-term care insurance protection according to the organization.
Individuals are purchasing protection at younger ages, explains Seal. More than half (53%) of individual buyers were between ages 55 and 64; compared to 50% the prior year. Another 24% were between ages 45 and 54. The age of buyers keeps dropping as consumers understand the cost-saving benefits of locking in good health discounts and ways to make protection more affordable, Seal explains. In 2000, the average age of an individual buying long-term care insurance was 67.
The number of individuals purchasing long-term care insurance protection for a specified number of years also increased according to the Association study. Just over three-fourths (76%) of buyers in 2008 opted for coverage for a claim lasting five years or less; a slight increase over the prior year (71%). The most expensive long-term care insurance policy is one with an unlimited benefit period (one with no cap on the number of years benefits will be received), Seal explains. Consumers are right-sizing their protection taking into account available savings and retirement income. This cost-sharing approach can reduce the cost of protection by 30 percent or more.
Perhaps in recognition of cost-consciousness, consumers were fairly evenly spread in terms of the level of selected daily benefit. Just under one-third (31.5%) opted for a daily benefit between $100 and $149. In current dollars, that amounts to between $36,500 and $54,385 in a yearly benefit, Seal notes. But most policies offer an option so benefits keep pace with rising costs and 15 years from now, the value of the (higher) benefit would be $75,800 a year.
Greg Seal is a local long-term care insurance professional. For additional information, call 303-671-9777 or E-mail Greg at gseal@c-hall.com.
Friday, August 28, 2009
How To Reduce Long Term Care Insurance Premiums
How much you'll pay for long-term care insurance is based on three factors. Your age when you apply, how much protection you want and your health when you apply. Where you live today and where you plan to retire also play a part.
But here is information that's most important for Denver, Colorado residents. Your long-term care insurance can be far more reasonable than you think.
Let me share a few ways people I work with significantly reduce the cost of long-term care insurance. Before I share, I thought the following statistic from the American Association for Long-Term Care Insurance (http://www.aaltci.org) was especially interesting. In 2008, individuals between the ages of 55 and 59 paid as little as $844-a-year for LTC insurance protection. The maximum paid by someone in this age range was $6,939.
So, how can one reduce the cost? Start by considering a policy that might protect a specific amount of your savings and assets. The coverage you buy today can increase in value over time. So, a policy that provides $115,000 of protection today can grow to $305,000 in 20 years. If you are married, some long-term care insurance policies allow one spouse to access the other spouse's benefit pool. That's an option well worth looking into.
Consider adding a deductible to your long-term care insurance policy. Most people have a deductible on their car insurance and their homeowner's policy. When it comes to long-term care insurance, adding a deductible will significantly reduce the cost and the majority of people select a 90-to-100 day period. The average savings will be about 20 percent annually.
Finally, know that costs vary significantly from one long-term care insurance company to another. I am a member of the industry's long-term care insurance association and they share enormous information. Once a year they undertake a Price Index Study and the costs for almost identical coverage can vary by as much as 100 percent depending on your age and marital status.
If you would like to learn more on long term care insurance please take a moment to call me at 303-671-9777 or E-mail me at gregs@c-hall.com. We will get you free information without any obligation. Thanks for reading our blog today we really appreciate it.
But here is information that's most important for Denver, Colorado residents. Your long-term care insurance can be far more reasonable than you think.
Let me share a few ways people I work with significantly reduce the cost of long-term care insurance. Before I share, I thought the following statistic from the American Association for Long-Term Care Insurance (http://www.aaltci.org) was especially interesting. In 2008, individuals between the ages of 55 and 59 paid as little as $844-a-year for LTC insurance protection. The maximum paid by someone in this age range was $6,939.
So, how can one reduce the cost? Start by considering a policy that might protect a specific amount of your savings and assets. The coverage you buy today can increase in value over time. So, a policy that provides $115,000 of protection today can grow to $305,000 in 20 years. If you are married, some long-term care insurance policies allow one spouse to access the other spouse's benefit pool. That's an option well worth looking into.
Consider adding a deductible to your long-term care insurance policy. Most people have a deductible on their car insurance and their homeowner's policy. When it comes to long-term care insurance, adding a deductible will significantly reduce the cost and the majority of people select a 90-to-100 day period. The average savings will be about 20 percent annually.
Finally, know that costs vary significantly from one long-term care insurance company to another. I am a member of the industry's long-term care insurance association and they share enormous information. Once a year they undertake a Price Index Study and the costs for almost identical coverage can vary by as much as 100 percent depending on your age and marital status.
If you would like to learn more on long term care insurance please take a moment to call me at 303-671-9777 or E-mail me at gregs@c-hall.com. We will get you free information without any obligation. Thanks for reading our blog today we really appreciate it.
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