Long Term Care Insurance Rate
Whereas an insurance quote can be defined as
an approximate figure given out by insurance companies on different policies,
an insurance rate is the actual figure charged to an individual as premiums to
be paid.
Several factors may affect a long term care insurance rate though it is fully
dedicated to disabled people and those who can’t fend for themselves.
Insurance companies have different ways of
calculating the insurance rates for different policies and genres of people.
The size of the insurance company may also
enable it to charge lower premiums due to the fact that they have a larger pool
of resources from other clients’ premiums.
The same may be true for lower companies
which would not want to take the risk of bearing the compensation expenses and
thus charge higher.
A long term careinsurance rate may not necessarily be determined by the age of the
insured.
However, the older a person gets before
applying for the policy, the higher the rates are bound to be charged.
For example, premiums initially taken at age
40 are much lower than those initially taken at age 60.
A long term care insurance rate may also be
determined by the health conditions of an individual depending on the date of
application of the policy and commencement of its compensation.
Healthy people are charged lower rates as
compared to sick people. Most people with very chronic illnesses or terminal
diseases may pay higher insurance rates.
Some insurance companies do not even agree
to cover certain individuals based on sickness.
For example, until just recently, insurance
companies could not offer insurance to individuals with AIDS.
It’s just recently that they agreed to offer
cover to insurance patients and even so, at very high premiums with the
condition that the cover will only take effect after paying premiums for two
years and not contracting the disease.
Another factor that may affect a long term care insurance rate is the nature of
business an individual is involved in.
People who are involved in business which
pose a high level of risk to them are charged higher premiums than those with
low risk level jobs.
For example, a nursery school teacher is
more likely to be charge much lower premiums as compared to an electrical
engineer.
The occupation that one is involved in is
therefore a very vital factor in the determination of insurance rates.
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