Disadvantages of Skimping on LTCI Daily Benefits

People acknowledge the importance of having long term care insurance coverage but many of them are having second thoughts about whether to buy or not as they fear the premium of a coverage with high long term care insurance daily benefits.

Who does not want to have a long term care insurance (LTCI) policy that offers a huge maximum daily benefit amount? Practically everybody wants this especially individuals who are living in areas where the cost of care is gradually killing the finances of people.

However ideal, an LTCI policy that stipulates a maximum LTCI benefit of $200 or much higher will subject a 65-year-old policyholder to a premium rate that is almost $2,000 or perhaps even more. One would need to be in a well-paying job to afford a coverage that costs this much.

Going back to the earlier paragraph, you’ll probably notice that the age of the policyholder was mentioned. Buying LTCI coverage at the age of 65 is too late already but if an individual will consider a policy with a $200 daily benefit amount at the age of 50 or younger he will manage to pay less than $1,500 annually without skimping on his daily benefits.

One’s age factors in his LTCI plan so younger buyers do not have to spend a chunk of money for the premium of a policy which has all of the ideal components stated on it.

Long Term Care Insurance Daily Benefits

Apart from one’s age, the average cost of care in the area of an LTCI applicant will also determine how much LTCI daily benefits or coverage shall be needed.

For example, a resident of New Jersey says that she prefers to get in-home care over facility care should she wind up needing LTC someday. Based on her LTC research, one day of assistance from a home health aide will cost $168 so she decides to secure a policy with a maximum daily benefit amount of $200.

Had the New Jerseyan above signed an LTCI policy which stipulates a daily benefit amount of $100 for home care, she would’ve saved more on her annual premium but her out-of-pocket costs will definitely soar as she’ll be spending $68 every day for LTC.

However, with her excellent choice she will evidently be able to stretch her LTCI coverage because every time she acquires care she’ll manage to put away $32 in her pool of benefits. In a year’s time, she would have saved a total of $11,520 unused LTCI benefits.

If that LTCI buyer finds it really necessary to adjust some variables in her coverage to cut down her premium, she can do so with her maximum benefit period. Instead of a five-year coverage period she can opt for three years as her daily benefit amount will, after all, extend her coverage.

Having a low annual premium is not the sole basis of a good coverage especially if your out-of-pocket expenses on care are gradually dwindling down your resources. What’s your objective in buying an LTCI policy? It’s to pay less for care, right?

Be sure that your long term care insurance daily benefits are based on your future health care needs otherwise you would defeat the purpose of buying this insurance product.