How to Save on Long-Term Care Insurance

Shop Multiple Insurance Companies

Premium differences between carriers can exceed 50% for identical coverage. We compare quotes from all major long-term care insurance companies to find your best rates. Company A might offer the lowest premiums for your age group, while Company B provides better rates for your health profile.

 

Maximize Available Discounts

Spouse and Partner Discounts

Save up to 40% when both partners apply for coverage. This discount applies to:

• Married couples
• Domestic partners
• Siblings living together
• Significant others

Good Health Discounts

Excellent health can reduce premiums by 100% or more compared to standard rates. Premium classes typically include:

• Super Preferred: Best health, lowest rates
• Preferred: Good health, moderate rates
• Standard: Average health, standard rates

Annual Payment Discount

Pay your premium annually to save up to 9% compared to monthly payments. This eliminates billing fees and provides immediate savings.

 

Smart Policy Design Strategies

Choose Appropriate Daily Benefits

Select daily benefit amounts that match your local care costs. A $200 daily benefit in a low-cost area provides the same protection as a $300 benefit in expensive markets, but costs significantly less.

Optimize Your Elimination Period

The elimination period acts like a deductible. Increasing from 0 to 90 days can reduce premiums by 15-20%. Many people choose longer elimination periods because they’re most concerned about extended care needs.

Right-Size Your Benefit Period

Consider your family longevity and financial resources when selecting benefit periods. A 3-year benefit period costs less than lifetime coverage but still covers the average length of care.

Learn More About How Long-Term Care Insurance Works

 

Tax Advantages and Deductions

Federal Tax Deductions

Long-term care insurance premiums qualify as medical expenses under IRS guidelines. If your total medical expenses exceed 7.5% of adjusted gross income, you can deduct premiums on Schedule A.

Age-based deduction limits for 2024:

• Ages 40 and younger: $480
• Ages 41-50: $890
• Ages 51-60: $1,790
• Ages 61-70: $4,770
• Ages 71 and older: $5,960

Business Owner Deductions

Sole proprietors, partners, and LLC owners may deduct 100% of long-term care insurance premiums as business expenses, regardless of whether they itemize deductions.

State Tax Incentives

Many states offer additional tax benefits for long-term care insurance purchases, including credits, deductions, or exemptions from state income tax.

 

Group Coverage Options

Employer Group Plans

If your employer offers group long-term care insurance, compare it carefully with individual coverage. Group plans often have:

• Lower premiums
• Simplified underwriting
• Reduced benefit options
• Limited portability

Executive Carve-Out Plans

Business owners can offer long-term care insurance to select employees (minimum 3 people) with discounted group rates but individual policy benefits. Spouses of executives also qualify for coverage under these arrangements.

 

Hybrid Policy Considerations

Life insurance with long-term care riders can provide:

• Guaranteed level premiums
• Death benefit if care isn’t needed
• Return of premium options
• Simplified underwriting

While initial premiums may be higher, hybrid policies eliminate the “use it or lose it” concern of traditional long-term care insurance.

 

Professional Guidance Saves Money

Working with a long-term care insurance specialist helps you:

• Compare quotes from multiple carriers
• Identify all available discounts
• Design optimal coverage for your needs
• Navigate complex underwriting requirements
• Maximize tax advantages