Cut Long-Term Care Insurance Cost In Half

The cost for long-term care insurance coverage is based on a variety of factors. Some you have no control over such as your age and current health when you apply. Others are choices that can significantly impact what you pay. Understanding how to take advantage of applicable discounts and saving techniques can reduce the cost by 50-to-60 percent yearly.

A simple way to reduce the cost is to apply for coverage approximately 30 days before your next birthday. "Insurers base cost on your age when you apply," explains Jesse Slome, the Association's executive director. "Applying just before your birthday can save you between three and nine percent every year."

Another way is to check if organizations you belong to make long-term care insurance available to members. "Even small organizations and businesses with a few as three employees now qualify for discounts that can lower the yearly cost for insurance by five percent," Slome notes. Many fraternal, alumni and religious organizations make available discounted long-term care insurance on a voluntary basis. "The same holds true for large groups like statewide auto clubs and smaller groups like local homeowner's associations," Slome adds.

Be certain to take advantage of tax deductions and credits that can reduce your real out-of-pocket cost. The federal government offers tax deductions for those purchasing long-term care insurance but these are generally limited to businesses purchasing protection. That said, a number of states are now offering tax credits of as much as $250 per-person encourage the purchase of insurance. A tax credit is a dollar for dollar reduction in your income taxes making the first $250 of coverage free.

Spouses as well as partners residing together can take advantage of the most significant discount available today when both parties purchase coverage. The discount can be as much as 40 percent applied to both policies. A number of insurers will even offer the discount when only one individaul purchases coverage or can health qualify.

Costs for long-term care insurance coverage can range signifcantly from one insurance company to another. "Each insurer sets their own rates and applicable discounts," Slome explains. "Virtually identical policies can vary by a few hundred dollars each year." Experts advise asking the insurance professional if he or she compared prices from more than one insurance company before making their recommendation.

The American Association for Long-Term Care Insurance has a free online guide available providing information on simple ways to reduce the cost of this important protection. No sign-in information is required to access the guide which can be found at http://www.aaltci.org/free-guide/.

Written by Mindy Hartman
Los Angeles, California
Special To Huliq.com