Long-Term Care Insurance - The Best Way to Save Money on Your LTC Insurance Premium

Long-term care insurance has a reputation forit starts on the day you begin to need care and
being expensive, especially for people who haveevery day counts, even if you do not receive
waited until they were in their 60's or 70's tocare every subsequent day thereafter. Other
investigate coverage. But there are ways tocompanies use a "days of service" method,
lower your premium amount. Also known as thewhereby it must be a day that care was actually
deductible, the elimination period is similar toreceived. In the overall picture of LTC insurance
deductibles with other types of insurancepolicy design, the method used to satisfy the
coverage, such as your automobile orelimination period is a minor consideration.
homeowner's insurance. However, instead of beingIn determining the elimination period most
defined as a dollar amount, with LTC insurance itappropriate for your situation and how that
is defined in days between the time you begin totranslates into out-of-pocket dollars, consider two
need care and the time the policy begins to payimportant points:
benefits. For example, if you need long-term care1. Your risk tolerance philosophy and whether or
services, and you had purchased coverage with anot you believe in co-insuring a small or large
100-day elimination period, on the 101st day ofamount of your potential long-term care costs.
your need for care, your "deductible" would be2. The average cost of care in your area. Use this
satisfied and the policy would begin to pay thefigure to calculate your out-of-pocket dollar risk
benefit amount.for various time periods by multiplying it by the
The elimination period is the most practical way toaverage cost of care per day in your area.
save money on your premium. For example, aIf you view LTC insurance as a highly
period in the range of 100 days can save acatastrophic type of insurance, consider a time
significant amount of premium dollars over aperiod higher than 100 days.
lesser time period.True long-term care is needing assistance for a
The more days that you are willing to pay forperiod beyond 100 days. Short-term care, care
your care out of pocket before your policy beginsneeded for less than 100 days, can normally be
paying benefits, the lower your premium rate.paid for without significant hardship to the person
You can choose a variety of elimination periods,receiving the care or their family.In certain
ranging from a zero-day - which would payinstances, a percentage of short-term care may
benefits from the first day you needed long-termeven be paid for by your health insurance or
care services - to as high as 3 years or longer.Medicare. For these reasons, always concentrate
There are various methods for calculating howyour premium dollars on true long-term care. This
the elimination period is satisfied. Some insurancemeans choosing an elimination period of at least
companies use a calendar day method, whereby100 days.