Contact Us

Other Resources

Counseling Locations and Appointments  

Outreach Events

Last Updated:    

3/12/03

Provisions that Effect Your L.T.C. Premiums

The younger you are when you purchase the policy, the lower the premiums will be.  Public policy towards the LTC can change and there is no guarantee that the premiums you pay will not increase over the lifetime of the policy.

You may choose to buy 2, 3, 4, 5 years or lifetime benefit coverage.  Most nursing home stays are less than three months, but some illnesses or conditions can last for several years and require long term care.  The average stay in a nursing home is 2 1/2 years.

Can choose from $100 up to $300 a day.  It is important to know how much nursing homes in your area charge.  What does home health care cost?  What is a realistic daily benefit amount?  What can your income and assets support?

Most policies include an elimination period, a deductible, or specified waiting period until benefits begin (0, 20, 30, 60, or 100 days are common).  Once you meet the required benefit triggers in your policy, you must "pay out of pocket" for these days before your policy pays anything.

You can choose between simple and compounded inflation protection.  This option can add 25% to 50% to the premiums.  In some cases it can be more economical to purchase a higher daily benefit amount instead of inflation protection (depending on your age and the policy). 

Home health care, assisted living, adult day care, nursing home care.  The more flexible the coverage, the higher the costs.  It is necessary to consider your support systems, proximity to family and living arrangements when considering which of these services to include in your policy.

If you can not afford to continue the policy, after paying the premiums for a specified number of years, you may receive reduced benefits.  This feature can increase the premiums 50 - 100%.