Long-Term Care Insurance Cost?

Long-Term Care Insurance Cost?

Premiums can vary and are based on a number of factors.  Major factors include your age and health at the time you purchase a policy and the type of coverage purchased.  Policy cost is affected by the amount of daily benefit, length of the maximum benefit period, inflation benefits and nonforfeiture benefits.

Long-term care insurance can be expensive so know what your income can afford today and in the future, before you spend on a long-term care insurance policy.  A general rule of thumb of affordability is the policy premium should not exceed 7% of your income. If it would be difficult to pay the premium today and you expect your income to not increase it is probably not a good idea to buy long-term care insurance.

Warning:  The term “level premium” can be misleading.  Most insurance companies will not guarantee that the premiums will never increase.  Before buying, examine the information provided in the outline of coverage and face page of the policy.