Long Term Care Insurance Rate




An insurance quote and an insurance rate are completely two different things.
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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