New premiums for LTC Insurance have increased - but there are ways to adjust benefits to reduce initial premiums

1. LTC INSURANCE
How to lower your premiums on

2. Let’s say you are a 60 year old married
female interested in LTC Insurance. Your
husband is not interested in buying, but
you had personal experience with
caregiving and want coverage!

3. You research on the internet and read an
article that the best plan design includes
coverage that will pay you at least $4,500 per
month for three years – with a benefit that
will inflate at 5% compound.
You contact a leading insurer and find the
premium for the above plan is…

4. $9,015.68
(per year)
Source: Leading LTCI Insurer, 2015 standard rate class,
Alabama

5. Wait, what?

6. What if you could
reduce that premium –
by a lot???
But…

7. You can reduce premiums by
adjusting benefits. The following
examples represents savings possible
through different plan design that
maintain the core value of LTC
coverage.

8. Cost reducing Tip 1
Consider having your
husband buy. When
couples both get
coverage, premiums are
substantially reduced

9. New annual premium for
you when your
husband buys too:
$5,281.19
($3,734 savings!)
Source: Leading LTCI Insurer, 2015 standard rate class,
Alabama

10. Why? Carrier claim studies show
that when both partners in a
relationship have coverage they
don’t claim as much as singles,
and especially single woman.
That’s why they price products to
attract male buyers – who are
usually more reluctant to buy.

11. Cost reducing Tip 2
Increase your elimination
period, or deductible.
Increasing the period from 90
days to 180 days will result in…

12. New Premium: $4,027.69
(4,988 total savings)
Source: Leading LTCI Insurer, 2015 standard rate class,
Alabama

13. Not surprisingly, claim studies show
that people with longer deductible
periods don’t have as high claims and
can be offered lower premiums.

14. Cost reducing Tip 3
Change the rate of inflation you
policy increases each year. If you
have the policy increase at a 2%
inflation rate instead of a 5%,
the new annual premium would
be:

15. New premium $1,532.61
(7,483.07 total savings)
Source: Leading LTCI Insurer, 2015 standard rate class,
Alabama

16. With inflation and interest rates very
low, the cost of insurers to offer 5%
inflation is VERY expensive. For those
who want more coverage, it might
make sense to buy a bigger monthly
benefit up front instead of choosing an
automatic inflation increase

17. 1,500 Bananas per year? I can afford that.

18. Let’s compare again. This is a long-term care plan for a 60 year old married female with a
leading carrier and standard (non-preferred) rates.
Plan A Plan B
Monthly LTC Benefit for
nursing home, assisted
living or home care
$4,500 $4,500
Elimination Period
(deductible)
90 calendar days 180 days of service
Benefit Pool 36 months x $4,500=
$162,000
36 months x $4,500 =
$162,000
Annual increase in
inflation percentage
5% 2%
Couples coverage Only one spouse buys Both spouses must buy
Annual premium for her $9,015.68 $1,532.61
($1,532.61 for him)

19. Other tips when buying LTC coverage:
• Don’t try and cover 100% of the cost -plan on coinsuring some
of the risk
• Come up with a premium budget first than design a plan
• Work with a professional who represents several carriers so
you can compare
• Don’t always pick the lowest price carrier but instead focus on
benefits important to you
• Don’t wait! Premiums are based on your age at issue. The
premiums for a 65 year old are much higher than a 60 year old

20. Copyright 2015 LTCI Partners, LLC. Products may not be
available in all states and product features may vary by
state. If available, invitations for application for LTC
Insurance are made through licensed advisors of LTCI
Partners, Lake Forest, IL, the agent in any application; in
California and Utah, dba LTCI Partners Insurance
Services. Cal. License # 0D51716. LTCI Partners or its
licensed representatives are currently licensed in all 50
states and the District of Columbia. License numbers are
available upon request.

21. THANK YOU!