While it’s a common belief that designing affordable Long-Term Care (LTC) coverage may prove difficult, if not impossible, there are ways to ensure manageable costs.
An LTC insurance policy is only as expensive as you make it.
Flexibility in plan design and product features enables this coverage to be available to meet most budgets. When putting a plan in place for your clients, keep these cost reducing tips in mind to prevent sticker shock:
Suggest An Asymmetrical Case Design
You may have some clients who want LTC coverage for themselves, but not for their spouse due to cost. While two fully loaded policies may prove costly, coupling a “token” benefit policy for one spouse can save a significant amount on their premium.
What can they expect to save?
- One of our strategic carrier providers offers a 40% discount for a married couple applying together (both approved) versus no discount for a married person applying alone.
- Other carriers will offer a 20-30% discount for a married couple applying together (both approved).
Take Advantage Of Age And Health
The earlier your clients start thinking about long-term care, the more options they’ll have to consider, and the more affordable those options will be. The ideal age to start the planning process is between 45 and 60.
Here are two big reasons why:
- The younger the clients are, the lower their annual premium will be versus a comparable policy purchased at an older age.
- The younger the clients are when they apply for coverage, the better chance they’ll qualify for a preferred health discount. The older they are, the more likely the application for coverage could be denied.
Adjusting To Fit A Budget
Regardless of a client’s age, they likely have a variety of other competing financial priorities on their mind. LTC insurance coverage doesn’t have to be an all-or-nothing decision.
The most important thing is to make sure to put some level of protection in place, versus ignoring the risk altogether. Having a pool of money in place enables clients to hedge against the risk of needing care someday.
We’re here to help you design a plan that is both affordable and the best solution for each of your clients’ needs – contact your LTC Specialist today.