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How are premiums for long term care policies determined?

Premiums are based on a number of factors including:

  • Age. Cost of coverage depends on your age when you first purchase a policy. Premiums are lower for younger people. But, the younger you are when you buy the policy, the longer you will pay the premiums. The premiums you pay for your policy generally remain the same each year; they will not increase as you get older.
  • Benefits. The higher the benefit level you select and the longer the benefit period, the higher the premium will be.
  • Waiting Period. A waiting period is the time it takes before your policy becomes effective. Some policies require that you pay for a specific number of days in a nursing home or a specific number of home health visits before benefits begin. The longer the wait, the lower your premium.




Dr. Joyce Cavanagh, Former Assistant Professor and State Specialist, Consumer and Family Economics















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Last update: Friday, July 25, 2008




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