How to Find, Evaluate, and Apply for Long Term Care Insurance
How to Find, Evaluate, and Apply for Long Term Care Insurance
A step-by-step guide to compare benefits, pick the right riders, and submit a strong application—without overpaying.
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Long term care (LTC) expenses—home health care, assisted living, memory care, or nursing facilities—can erode retirement savings quickly. This guide shows you exactly how to find suitable carriers, evaluate benefits and riders, and apply for coverage with confidence. As an independent broker, Diversified Insurance Brokers compares policies from 75+ A-rated carriers to match budget, health, and goals.
Where to Start: Finding the Right Options
- Clarify your care preferences: Home care first? Assisted living vs. nursing facility? Preferences guide benefit design.
- Set a budget range: Decide a comfortable monthly premium (e.g., 1–3% of household income) before choosing riders.
- Work with an independent broker: We shop 75+ top-rated carriers and explain trade-offs clearly—no single-company bias.
- Confirm state availability & discounts: Many carriers offer spousal/partner and preferred health discounts.
How to Evaluate Benefits & Riders
- Monthly benefit: Typical designs target $3,000–$8,000/month. Choose monthly (not daily) benefits for flexibility.
- Benefit pool (maximum): Total dollars available (e.g., $200,000–$400,000). Shared Care lets spouses access a combined pool.
- Benefit period: Often shown as 2–6 years. Actual duration depends on how much of your monthly limit you use.
- Elimination period: Like a deductible in days (commonly 90). Calendar day waits activate faster than service day.
- Inflation protection: 3% or 5% compound inflation helps benefits keep pace with rising costs; consider age and budget.
- Home care & care coordination: Ensure robust home care, caregiver training, respite, and care management benefits.
- Return of Premium / Waiver of Premium: Optional riders that add cost—choose selectively.
- Partnership: State Partnership-qualified policies may offer asset disregard if Medicaid is ever needed.
Quick Comparison: Standalone vs Hybrid
| Design | How it Works | Strengths | Trade-offs |
|---|---|---|---|
| Standalone LTC | Pure LTC policy with customizable benefits and inflation riders. | Often most LTC per premium; Partnership availability; strong home-care features. | Use-it-or-lose-it (no death benefit); premiums can be subject to future increases. |
| Hybrid Life/LTC | Life insurance with LTC rider that accelerates death benefit for care. | Benefit if care is or isn’t needed; premiums more predictable. | Usually higher premiums per $ of LTC; underwriting considers both life & LTC risk. |
| Hybrid Annuity/LTC | Annuity that multiplies contract value for qualified care expenses. | May accept broader health profiles; leverages assets; tax-advantaged for LTC withdrawals. | Care multiplier and durations vary; compare carefully with standalone designs. |
What LTC Policies Cost (Sample Designs)
Illustrative ranges—actual premiums vary by age, health, state, carrier, and riders.
| Applicant | Design | Est. Premium |
|---|---|---|
| Age 55, Single | $4,000/mo, $200k pool, 3% compound inflation, 90-day elimination | $120–$180/month |
| Age 60, Couple (Shared Care) | $3,500/mo each, combined $300k pool, 3% compound inflation | $180–$260/month (combined) |
| Age 65, Single (Budget) | $3,000/mo, $150k pool, no inflation, 90-day elimination | $90–$140/month |
Underwriting & How to Strengthen Your Application
- Medical review: Health history, Rx checks, cognitive screens, and (sometimes) a phone or nurse interview.
- Stability matters: Document controlled conditions (e.g., BP, diabetes), PT progress, and absence of recent falls.
- Apply before issues escalate: Ages 50s–early 60s typically see better pricing and acceptance.
- Spousal discounts: Applying together can reduce premiums—even if only one accepts coverage.
- Be consistent: Your application, physician records, and Rx history should align.
How to Apply: Step-by-Step
- Quick discovery call: Clarify care preferences, budget, and timeline.
- Pre-underwriting check: We review meds/conditions to target the most receptive carriers.
- Customized quotes: Compare 2–3 designs (benefit, pool, inflation, elimination period, riders).
- e-Application: Simple digital forms; some cases require a brief phone/health interview.
- Decision & issue: We review approval terms together and finalize billing and policy delivery.
Get Your Personalized LTC Plan
We’ll compare multiple carriers and design coverage around your care preferences and budget.
Common Mistakes to Avoid
- Waiting too long: Prices rise with age and new diagnoses; options narrow after adverse events.
- Skipping inflation: Without 3% compound, benefits can lag rising care costs—especially for ages 55–62.
- Under-insuring home care: Many claims start at home. Prioritize strong home-care language.
- Overbuying riders: Add-ons can inflate premiums. Focus on impact per dollar.
- Not coordinating with income plan: Pair LTC with annuity income to stabilize cash flow during a care event.
Helpful resources
FAQs: Long Term Care Insurance
When is the best age to buy LTC insurance?
Many applicants see the best mix of pricing and approvals in their mid-50s to early-60s, before health issues emerge.
How much monthly benefit should I choose?
Start with local home-care and assisted-living costs, then target $3,000–$6,000/month with 3% compound inflation if budget allows.
Is Shared Care worth it for couples?
Often yes—Shared Care lets spouses access each other’s pool, extending protection if one partner has a long claim.
Can premiums increase?
Standalone policies can be subject to future increases. Hybrids are typically more premium-stable but may provide less LTC per dollar.
What if I’m declined?
We’ll pivot to alternative carriers or consider hybrid annuity/LTC options that may accept broader health profiles.
Talk with an LTC Specialist
Compare multiple carriers and design a plan that fits your care preferences and budget.
