How much does it cost?
Answer: That depends on a lot of moving parts. Price is based on AGE, GENDER, QUALITY of health (and sometimes you can’t get it!), TYPE of product, and SIZE of benefits. We have seen prices range from a low of $1000/year to highs of $8,000 to $10,000 per year per person. And literally everything in between. The only way to know for certain is to speak with an agent. A qualified agent who specializes in this type of product can give you accurate pricing and help you winnow thru the many decisions you need to make.
~ AGE – younger is cheaper. Average purchase age in the USA today is in the late 50’s or early 60s.
~ GENDER – they charge more for females. Women live longer than their men. When a woman ages alone, she has no spouse to provide care at home for free. So women claim longer than men. Men’s claims tend to be shorter and a longer window of home care, though, because of the pattern of having a younger spouse. This will not be true on all cases – clearly it can be the. However, the stats say women make larger claims, therefore they are frequently charged more premium.
~ QUALITY of HEALTH – this is usually the biggest shocker. You have to health qualify and it is not like other insurance where you can simply pay more the worse your health is. There is a threshold beyond which no insurance company will take you. So, applying younger usually means a better chance to health qualify. About 1/3 of the 60 year olds we see cannot get coverage. By 70, it is nearly 98% that can no longer health qualify.
~ TYPE of product – this is a complex topic. You really should READ THIS blog for more details. However, in brief, you can get a true long term care only policy (pays for care, but if you die there is no payment or value…unless you pay for return of premium) OR you can purchase a linked-benefit product (also called hybrid or combination product) that has married long term care to a life policy or an annuity. These will pay for care, or pay a beneficiary if you die with no or minimal care, or you can quit out of them at any point and get some of your investment back. As you might imagine, the hybrid products cost more as you are asking the product to do more things. It’s insurance – the more benefit you fold into it, the more expensive it runs.
~ SIZE of benefits – Now we repeat ourselves: it’s insurance…the more benefit you fold into it, the more expensive it runs. Working with a someone who is knowledgeable can help you purchase smaller benefits to help keep costs down. We recommend speaking with more than one agent to see their logic thru this problem. Some will be more friendly to partial coverage than others. You want to work with the person who makes the most sense to you. Insurance is a risk-management product. Not risk certainty. No one can really know the future. You have to make your best guess and have peace with it. Some agent will “speak your logic language” and that is the person you want to work with. Further shopping my expose you to different companies or products as agents will vary on who they have access to. This is not a small financial decision. It is worth your time and energy to make the best choice for you.