Why Pay Too Much For Insurance?

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According to MSN money, 42% of Americans who are 65 today will enter a nursing home during their lifetime. The current average annual cost of a one-year nursing-home stay is almost $50,000, and none of this cost is covered by Medicare, Medigap or private medical insurance. Women are especially vulnerable because they have a 50% greater chance of needing nursing-home care than men.

The premiums for long-term care insurance are expensive, but unless you have assets of $2 million or more, you are probably going to need it. If you don’t have it and experience a long term illness you may have liquidate other assets to pay for it. Premiums for long term health insurance vary based on your age, sex, geographical location and policy type, but annual costs can range from $400 a year for a 40-something male to more than $3,000 for a man or woman aged 70 or older. 
 
Obviously, long term health care is not cheap and ideally you want to get it as early as possible when the premiums are lower and you are free from pre-existing conditions. But if you have to buy later rather than sooner there are still some ways you can save money.

Buy group coverage – Group coverage is cheaper than a comparable individual policy. If your employer offers long-term care insurance as an optional employee benefit considers taking the option. According to MSN money the employee can usually buy coverage for themselves, their spouse and their parents.

Extend your waiting or elimination period – This is the period of time you must wait for the benefits to kick in. Your choices are usually 30, 60 or 90 days. Choosing the 90 day option will reduce your premium costs significantly.

Shorten the coverage period – Don’t take the lifetime coverage but get a coverage period between three to five years. According to industry sources the average nursing home stay is approximately two and half years.

Take a lower daily benefit – Studies show the average annual cost of private nursing home care is approximately $150 per day. Choosing a lower amount can reduce your premium. You may have other income you can use to make up the difference.

Choose a joint policy - If you are married you can get a joint policy for you and your spouse. As mentioned above many companies offer this option.

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