If this is an issue for you, you should consult with an LTCI specialist that can provide you with expert knowledge on the topic. But, in general, underwriters base their premiums on several key factors — your age, gender, and size of the benefit, among others. Beyond this, there are some other considerations that may reduce the cost of LTCI:
It will almost always cost less to apply for LTCI through a group plan, instead of as an individual. If you’re still working, check to see if your employer offers a program. If not, any group of people, including a local bridge club, can organize a plan and help reduce the cost of individual LTCI.
Business owners should be able to treat some portion of LTCI as a deductible expense, depending on how their company is structured. Owners of C corporations enjoy the largest deduction, although all structures (S corp, LLC, etc.) can claim some tax benefits.
Other Tax Breaks
You may be able to get some tax savings if you can pay for LTCI through a qualified health savings account, medical savings account, health reimbursement account, cafeteria plan, flexible savings account, etc. You ought to consult a tax professional for expert advice in this area.
There are a couple of payment alternatives worth looking into, such as:
Semi-annual or Monthly Payments
Typically, LTCI involves a single, annual premium payment. Providers may offer the option to make semi-annual (or even monthly) payments, although the total out-of-pocket expense will be higher than a lump sum payment.
Depending on your circumstances and future plans, it may make sense to use your home equity to cover the cost of LTCI. See my blog post for more about this.