Choosing A Long Term Care Insurance Deductible

Everyone knows that the higher your deductible, the lower your insurance premiums. But you may not be aware that long term care insurance has a unique kind of deductible. For long term care insurance policies, the deductible is called an elimination period or waiting period.

• The elimination or waiting period is the length of time you must pay for long term care out of pocket before receiving your benefits.

A policy with a 30-day waiting period can cost as much as 30 percent more than a policy with a 90-day waiting period. Waiting periods can vary from 0-day, which is more expensive but your benefits begin immediately, up to 90-days and sometimes more. The deductible cost must be weighed against what you can truly afford. A longer waiting period can save you money on premiums, but you'll need enough resources to pay for long term care during the waiting period. Long term care can be expensive with home health aides averaging $19 an hour and nursing homes costing $3,000 a month or more.

Choosing the right deductible will save you money. Comparison shopping between long term care insurance companies will help you to find the best price for the policy benefits you want.

Sources

1. How much does long-term care cost? Retrieved April 23, 2008, from http://www.iii.org/individuals/longtermcare/LTC_cost/
2. Bleak Retirement for 150 million? (2008). Retrieved April 10, 2008, from http://articles.moneycentral.msn.com/RetirementandWills/InvestForRetirement/BleakRetirementsFor150Million.aspx