LTC insurance policies are now available with an inflation protection option. This will certainly add more value to your coverage benefit than before. There are 3 interest rate options that may help cope with inflation - flat, simple and compound.
Flat-rate option
It can be of real help for people who're in their 70s and covered. It's certainly the cheapest LTC offer that you may have in the market. Under this option, your policies are eligible for tax deduction and thus help you cope with global recession. This will also depend on a number of factors e.g. your age, gross income changes, the insurance carrier and related costs.
Simple interest rate option
With this option, there will be a 5% increase in your premium amount every year. The calculations will be done on a simple interest basis. It's a good option for policy holders above 65. On the other hand, inflation adjustment with a compound interest-rate will be beneficial if the policy has been in existence for around 12 years.
Compound interest rate option
Finally, this option will adjust inflation with a 5% increase in premiums each year. With this option, the policy holder might even experience a premium cost hike worth 50%. It's a fairly good option for policy holders who're less than 65 years old. For such people the policies are expected to be in place for a longer period of time.
You may choose the waiting period for your Long term care insurance policies on most occasions. A short waiting period adds value to your coverage as you may enjoy your policy benefits the sooner you need them. Once you opt for a longer waiting period, you'll need to bear a lower premium.
Under a global recession, it's always better to opt for an individual policy rather than a group policy offered by your employer. With a group LTC policy, you'll always have the risk of losing your coverage once you lose your job.
You must also consider the possibility of filing a disability insurance claim since it might affect your current employment as well as your future endeavors. This in turn will also affect your ability to pay premiums.
Make sure that you don't hamper any specific medical care. You should settle all medical issues before they get more complicated.
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