How to Save Money on Long-Term Care Insurance

If you are considering long-term care insurance protection for yourself or a loved one, it’s likely that one of the foremost questions on your mind is “how much will it cost?”

This article is intended to provide some general information and suggest a two ways that you can make this protection far more affordable than you might think.

Take Advantage of Insurer “Sweet Spots”

The sweet spot on a tennis racket or golf club is the location where you get the most power from your stroke. With long-term care insurance, the sweet spot is where you get the most protection for the least cost.

Finding the sweet spot is especially important when you look for long-term care insurance. That’s because your cost is generally set for the life of the policy (though this is not a guarantee). And, because it almost never pays to change policies or insurers down the road. Policy costs are based on your age when you apply and your health.

So, you want the best cost for the best protection from the get-go.

Each insurer sets their own rates based on the type of clients they seek to attract. The company with the lowest cost for a 55-year-old married couple, may not be the least expensive for a 55-year-old single individual or, for that matter, a 64-year-old married couple. For example, a recent comparison of rates from four insurers (Genworth, John Hancock, New York Life and Northwestern Mutual) for a 55-year-old found that virtually-identical coverage from Northwestern would cost almost $1,000 a year more.

There are two kinds of insurance professionals who offer long-term care insurance. Agents generally represent only one company (which may indeed have the best offering). Brokers typically are independent and can represent multiple carriers. They can shop the market.

An important question to ask whoever you contant is whether they will be comparing policies and how many they are looking at before recommending a solution.

Your Good Health Today Can Save You 10% to 20% Each Year

Drivers without accidents and tickets pay less for their auto insurance. Individuals with few or no current health conditions pay less for their long-term care insurance. Insurers generally offer a 10% deduction.

And, best of all, this good health (some call it preferred health) discount is locked in. That means, you don’t lose the savings when your health changes. And, as you get older, it will change.

A study conducted by the long-term care insurance industry’s trade organization in 2008 revealed the percentage of applicants who qualify for good health discounts. It’s clearly to your benefit to start the process at younger ages, certainly while in your 50s.

Percentage of Applicants Who Qualify for Good Health Discount

Age of Applicant Average Who Qualify

Under 30 63.2%

30 to 39 66.3%

40 to 49 66.8%

50 to 59 51.5%

60 to 69 42.2%

70 to 79 24.2%

80 and Over 12.9%

Bottom line, an educated consumer always has an advantage when buying any financial product. Long-term care insurance is offered by between 40,000 and 50,000 insurance agents, financial planners and stock brokers. They should be willing to provide cost comparisons and explain ways you can save without any obligation. After all, it’s in your best interest … and theirs.

To find a comprehensive online directory of over 3,000 insurance professionals who can assist with your long-term care insurance needs, visit the Consumer Information Center of the American Association for Long-Term Care Insurance.

Guide on How To Save On Auto Insurance

Saving is always a wise act. Saving on insurance is good for as long as you do not suffer the essentials in exchange of saving a few bucks. What would be the wisdom in being able to save a little only to spend that much in the end because the auto insurance you got has limited coverage? The point being here is not to advise buyers to get the most expensive auto insurance but rather to give the buyer the chance to discern with regard to what they need and what they will be getting.

The very thing to consider trying to save on auto insurance is getting the right one, granted that you are still on the verge of getting insurance. Here are several ways to save on car insurance:

1) Take advantage of the competition. The very nature of competition, of having several players in the market is to extract the best deal for the client. For insurance companies to attract customers, they must try to offer the lowest premium possible. Although this can be affected by a number of factors like driving record and area or territory which the client lives, it still is a good point to start.

2) Know what coverage you really need. Knowing what you need would pretty much dictate the coverage you would require. At times people are not able to save in getting auto insurance is because they get to pay more for certain coverage they really do not need.

3) Utilize available payment schemes.It is of big help if you can pay for your premium in instalments. You may have to pay a bit more overtime but you may not be demanded to give out a considerable amount of money in one giving. This will be a factor in saving if in the end it allows you elbow room in your finances.

4) Consider the type of car that is less to insure.One way to save on auto insurance that most people tend to overlook is the fact that the kind of vehicle they will insure very much affects the premium. Care to find out which type of vehicle would require lesser premium most especially when you get collision and comprehensive coverage.

5) Choosing your deductible. A deductible is the amount that the insurance does not pay for repairs and is shouldered by the client. Should the client decide to raise his/her deductibles, the insurance premium is lowered.

6) Improving ones credit. A client’s credit is a big factor when auto insurance companies compute for how much to charge. A good credit standing is always favourable.

7) Appeal traffic violations if contestable. A traffic ticket increases the premium in auto insurances. When a traffic ticket aka civil traffic citation is contested, it is always before a judge. If the court finds reason in your plea, the decision will be in your favour. In that case you would not be charged for the violation. No violation, no bad record. No bad record means there will be no increase on your premium.

Top Ways to Save on Auto Insurance

When you get a car, you need to have auto insurance. It is important to get coverage that is comprehensive, but also inexpensive. While most people care a great deal about getting a good price when they first set out to get car insurance, they often fail to continue searching thereafter. Not continually looking for good deals can cost you hundreds each year.

Many people are unaware that the cost of your auto insurance can be lowered to help you save, depending on your driving record, your car, and where you are.

Increase Your Deductible

If you insurance the amount you pay for a deductible, it will reduce the cost of insurance fees. Now understand that this move is certainly one way to save on the costs month to month, but if you end up in a car accident, then yes it can end up costing you more to fix the damages.

However, if you have a history of being a safe driver, try it out and set some money aside for an emergency fund to cover unexpected car costs.

Try Carpooling

There are some insurance companies which actually track mileage, so the less you drive, the cheaper your coverage. With these policy types, if you drive less than 7,500 miles you get the lowest rate, and anything up to 13,000 is the medium rate.

Change Plans to What You Need

It is better for you to change plans to what you need, when you need them. Buying a brand new car is going to require different insurance compared to an older car. When you are paying off your car loan you will need collision and comprehensive coverage, but once it is paid off you have many more insurance options at your disposal.

You might end up with more collision insurance than you need. In fact, on older cars it is recommended that you drop collision insurance anyway because comprehensive coverage is comparable inexpensive and will give you all the coverage you need.

Combine Policies

If you have car insurance and renters/homeowners insurance through different companies, you might be able to combine your policy with one company and stack discounts.

Check for Discounts

If you have changed jobs, moved somewhere new, or anything else, keep track of your policy options. You might be able to get a cheaper policy in a new town or with a new job.

Check Your Credit

Your credit score has a small role to play in what your insurance costs are. So pay your bills on time and make sure you work hard to improve your credit score. As you are doing so, continually check to see if you now qualify for lower rates.

Other Discounts

As a student, good grades can earn you discounts. As an adult, see if you can take an adult driver safety program from better discounts. Consider avoiding a red colored car, as these come with higher insurance rates for users compared to other colors.