The biggest question we get from our clients is, “how much does hybrid LTCI cost?”, and there is so much more that goes into our answer than you would think! Start by asking yourself, how much can I afford to invest in my future health needs? It may be best to sit down with your financial advisor to get a realistic idea of your budget and what you can afford outside of your daily living expenses and how long you can maintain that extra expense. See below for hypothetical hybrid LTCI premiums so you can begin that conversation with your financial advisor.
As with any insurance expense, premiums for hybrid long term care insurance range widely from one person to the next and are not a one size fits all. By speaking to one of our insurance brokers, you can have a better idea of what to expect insurance premiums to be for yourself specifically. Be prepared to answer a few health and benefit questions as this information gives your designated broker a base starting point to assist you fully and give you the correct information specific to your circumstance.
Premiums are based on many health factors but the few we need to know up front to properly quote you include things such as your date of birth, if you are a smoker, your height and weight and any current use of prescriptions including the reason behind the prescription use. With this information, our insurance brokers can then identify what class rating to quote you at as well as which company you would qualify to apply with. These questions are for quoting purposes only and even then, the quotes provided to you are subject to change based on your full health history interview during the underwriting process after you have filled out an application.
Once our brokers have a baseline of your current health status, they will then ask you some basic benefit option questions. Something you will want to think about is, what is your goal for obtaining LTCI. Are you trying to cover all or most of the long term care costs should you need it or are you just trying to cover a fraction of the cost to alleviate some of the out of pocket expenses that you already plan to pay for? Knowing the answer to this question will give your broker a better idea of how much insurance is needed and for how long you want the coverage to last. From there, they will then ask you if you would like to pay for your premium up front with one single premium payment or if you would rather space your premium payments out over the span of 5 to 10 years. With all of this information combined, your broker will now have a better understanding of your LTCI goals and can accurately supply you with a range of side by side quote comparisons.
Going back to our original question, how much does hybrid LTCI cost? We have provided a range of generalized quotes based on hypothetical statistical information. These numbers are not exact costs for hybrid LTCI policies however, they provide a realistic expectation of how much you would need to fund this style of policy so that you can bring this information to your financial advisor and discuss whether this is something that fits into your financial road map.