There’s a thinking behind your long term care insurance premium. There’s an understanding that causes the difference in premium based on different profiles. You’ll do well to understand it. This article will help you…
Every insurance company is out to make a profit. If they don’t make profit, they won’t exist, simple! To ensure they are profitable while providing insurance coverage to those who request for it, they’ve developed a system that helps them determine the likelihood of making a claim.
If companies could help it, they’d only look for prospects who’ll never ever make a claim. However, since that’s impossible, they calculate the chances that a person would make a claim and then bill them accordingly.
If a person is 65 years old and has a substandard health rating, the chances that they’ll require long term care is higher than a 50 year old who has a standard health rating. Their rates will differ to the degree that the insurer thinks they’ll likely make a claim.
If the cost of long term care for a year is $100k and one such claim is made out of 1000 insureds for a given profile, the insurer will be able to fulfill its obligation and still turn a profit if they ask for a premium of $250 per insured for that profile.
What does this mean to you It means that you’re better off getting your long term care insurance policy when age and health are on your side. It also means that you’ll get different rates from different insurers.
Therefore, do it as early as possible and take some time out (Just 15 minutes) to visit at least three quotes sites for your long term care insurance. Compare the quotes returned. You’ll realize much savings that way.
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