Ways to Determine Costs of Long Term Care Insurance

Error Saving Reaction

Ways to Determine Costs of Long Term Care Insurance

Long term care is no longer a luxury but a necessity that needs to be taken into consideration and put in long term finance planning. Costs of long term care insurance can vary between companies since each have their own specific set of benefits and features. Yet, there are certain basic factors that remain the same in all so one can devise ways to lower the premiums and control these costs which can be a comprehensive pre-packaged one or a more specific customized plan. Debilitating illnesses can be painful and prolonged and can lead to need for long term care which can be quite expensive unless one is prepared and plans well.

Let's take a quick look at the ways to determine costs of long term care insurance:


    • Duration - This is one of the key factors to determine the cost. This duration or period is the length of time for which the benefits are available to you and will be paid. It can range from a two and three years to five year benefits. Some companies have to the option of unlimited duration in which case you will be covered for a lifetime but the premiums will be higher.

    • DBA - The amount that you choose for your DBA or daily benefit amount will play a major role in determining the costs of long term care insurance. The DBA is the maximum amount available for your care in any single day and range from $100 to $500 depending on the kind of policy that you choose.

    • Waiting Period - Also called the deductible or the elimination period, this is basically the number of days during which you must be eligible for benefits before availing them. The costs may vary depending on how short or long this waiting period is for one.

    • Inflation Protection - While most policies offer a steady premium option there are certain factors like volatile markets or inflation that can greatly affect the costs of long term care insurance. You can opt for inflation protection which keeps your premiums steady while ensuring rise in benefits over the years. There are automatic compound inflation options which offer annual increase in benefits but low premium rates are not always guaranteed.

  • FPO - The FPO or the future purchase option offers policy holders an opportunity to increase their DBA or daily benefit amount every two years. The maximum lifetime benefit can also increase along with this but in both cases there will be a corresponding increase in the premium. One can enjoy greater benefits and a more comprehensive coverage but there will be no safeguarding from the inflation.


The costs of long term care insurance depend on these above factors but also on some pre-policy factors like one's age and health at the time, the insurance policy is being issued. The older one gets the higher the premium costs are therefore one should apply and get the policy in place before any long term illness affects health negatively.


Views: 371
Author: Regular Articles

Taylor Hill, author. For more details and information about Long Term Care Insurance costs visit the site CaliforniaLongTermCare.com today for a free consultation and quotes.

Tell a friend
Average rating:
(2 votes)
Average rating from Reviews:
(0 votes)

Write a review


Zacks Industry Outlook Highlights: Freeport-McMoRan, Newmont Mining, Golden Star Resources, Randgold Resources and Kinross Gold

Zacks Industry Outlook Highlights: Freeport-McMoRan, Newmont Mining, Golden Star Resources, Randgold Resources and Kinross Gold Read More

Gold Mining Stock Outlook - Sept. 2017

Gold Mining Stock Outlook - Sept. 2017 Read More

Why Freeport-McMoran (FCX) Stock Might be a Great Pick

Freeport-McMoran (FCX) is seeing solid earnings estimate revision activity, and is a great company from a Zacks Industry Rank perspective. Read More

Friend of slain Georgia Tech student: 'If Scout was more gender-conforming, would it have been different?'

Scout Schultz, a Georgia Tech student, was shot by campus police on Saturday night, and a protest two days later led to arrests. In the aftermath of those events, Yahoo Lifestyle talked to a friend... Read More

How to Make Healthy Leftover Turkey Tacos

These tacos get a healthy makeover by using turkey as the main lean protein. It all comes together with some beans, avocado, and a little cheese. Watch the video to learn how to make this easy... Read More

Little People, Big World's Audrey Roloff Just Gave Birth to Her First Child

It's a girl! Read More

Mel Brooks: ‘Blazing Saddles’ Would Never Be Made in Today’s ‘Stupidly Politically Correct’ Culture

“Blazing Saddles” may be a groundbreaking comedy, but director Mel Brooks doesn’t think Hollywood would make the iconic Western parody in this current “stupidly politically correct” climate. The... Read More

Box Office: 'Kingsman: The Golden Circle' Unseats 'It' as 'Lego Ninjago' Disappoints

Kingsman: The Golden Circle is the new ruler of the box office. The sequel from Fox is expected to earn $39 million this weekend from 4,003 locations. That’s slightly below where tracking had... Read More

Bradley Cooper-Lady Gaga’s ‘Star Is Born’ Moves to May 2018

Warner Bros.’ “A Star Is Born” remake starring Stefani Germanotta (Lady Gaga) and Bradley Cooper, who is also directing, is moving up its release to May 18, 2018. The pic was originally set to open... Read More

White House officials defend Trump, say athletes 'can do free speech on their own time'

Treasury Secretary Steve Mnuchin defended Trump’s call for NFL players who kneel during the national anthem to be suspended or fired. “It’s not about free speech,” Mnucin said Sunday. “They can do... Read More

In wake of U.N. speech, Kim calls Trump a ‘dotard.’ Trump fires back at ‘madman.’

President Trump and North Korean leader Kim Jong Un have unleashed personal attacks on one another after the U.S. commander in chief’s speech at the United Nations. “Kim Jong Un of North Korea,... Read More

As Russia probe turns to fake Facebook ads, Trump follows with a tweet

President Trump continued his efforts to belittle accusations of Russian meddling in the 2016 election on Friday, turning to the latest set of charges, involving targeted political ads placed on... Read More

Reluctant champion: How Nadia Murad has become the international face of Yazidi suffering – and resilience

Weeks earlier, Nadia Murad had been ripped from her village by Islamic State (ISIS) fighters who murdered her family and took her captive. Along with other young Yazidi women, she was transported... Read More

Readers write: The work of downsizing, evidence of climate change, hopeful coverage on famine

Regarding the Aug. 21 Monitor Daily story “Home prices, and a thought shift, give ‘small living’ a boost”: Interesting concept. My friend has done it, downsizing and living in a tiny apartment.... Read More

Time for the world to step up on Rohingya issue, Aung San Suu Kyi’s astounding hypocrisy, Irma’s destruction in Britain’s Caribbean islands, The US should stop saber rattling, On the Nadal-Federer comeback

“It is high time the world made an all-out effort to stop the ongoing pogrom against Myanmar’s minority Rohingya...,” writes Mohammad Amjad Hossain. “The pogrom resembles those crimes perpetrated... Read More