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Updated by Violet Swenson on Nov 10, 2016
Headline for 4 Simple Ways to Save for Long Term Care Costs
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4 Simple Ways to Save for Long Term Care Costs

Here is the list of effective ways you can save on long term care costs.



Dealing with Long Term Care Cost by State

Moreover, long term care insurance rates vary from one state to another. What they offer in Nevada may be different in Florida or Colorado. Aside from the tips mentioned above, make sure to seek advice from LTC experts on whether there are local support groups and programs to help lessen LTC costs. One key strategy to consider would be LTCI partnership policies. State partnership programs are currently being pushed in several locations in the country. These programs will allow beneficiaries to be able to purchase LTCI plans by using Medicaid resources. Additionally, policyholders will be able to receive Medicaid benefits without going through asset and estate loss. Please make sure to confirm with an LTCI expert to check if your state has a partnership program set.


Inflation Protection

Lastly, inflation protection is an option that you can choose to include in your long term care costs plan. This option increases the policy’s daily benefit amount during the policy term in order to keep up with inflation. Although this particular option will increase a policy’s premium, having protection from the rising dollar is needed to make sure you’ll get the care you deserve in the future.


Waiting Period

The waiting period refers to the time between making a claim and the actual payment of it. During this period, any expenses that should occur will be covered by the policyholder. Although it may seem to be a hazard for individuals aiming to stick to a budget, this duration of time does have its perks. Waiting periods usually last up to 90 days, with specific cases for policyholders to request for a longer term. The main reason why some would opt for more days in a term is that a longer period of wait can result to lower premiums to pay. Regardless of the length of the time span, make sure to check if you have enough funds to last during the waiting period.


Daily Benefit

The daily benefit refers to the maximum amount that the insurance policy will pay for each day of care received. You can get a policy that will pay for $100-$500 a day or even an unlimited coverage, which means that if you need care for five years, it will pay for the entire duration. Just remember that the lower the daily benefit is, the lower your LTCI premium will be. As such, make sure to consider various aspects in your lifestyle (or possible health factors) that may be relevant with your future spending. You would want to have an amount that will best satisfy with your costs – too little and you may need other sources of income; too much and it’s as if you’ve just wasted paying for premiums.