Page 49 - Growing Old Without a Plan for Long Term Care is not for Sissies_Neat

Ok, I Get it Now, But What Does it Cost? 31 Infation Protection: This protects you from part or all of the effect of price infation on the cost of care, increasing your beneft level each year at a predetermined rate or giving you the guaranteed option of purchasing more protection at a later point in time. The infation protection you choose signifcantly affects the premium. Generally, the Guaranteed Purchase option is the least expensive and 5% compound protection is the most expensive. If the amount you can budget today for Long Term Care Insurance premium is limited, consider the Guaranteed Purchase option or 3% compound instead of not purchasing at all. Built in Benefts: Many companies include built-in benefts such as a cash payment for home health care. These features, even though they are built in, can affect the premium of the policy compared to a plan that doesn’t include the same features. Options: If you add some of the options discussed in Chapter 4 to your plan, this will increase your premium. Yeah, but what does it cost? Well, within certain upper and lower limits, it costs whatever you want it to cost. Together with your Long Term Care Planning Advisor, you design the plan to ft your needs and your budget. Using special software, you can compare the plans and premiums from multiple companies. There are two approaches you can take in planning and pricing your Long Term Care Insurance policy—one is beneft driven and the other premium driven. Beneft Driven Approach Determine the benefts and options you want. Then ask your