How to reduce long-term care insurance costs for 2025
With a new year on the horizon, many Americans may be reevaluating their financial health. One crucial element of this review requires a look at ways to save money and cut expenses. And with inflation cooler but still worrisome for many and interest rates elevated, this consideration is important going into 2025, especially for seniors and older adults reliant upon limited income.
Long-term care insurance, which can help pay for in-home caretakers, nursing homes and assisted living facilities (amid other features), can help alleviate some of this economic burden. But policies aren't free, either, so seniors will need to explore their options to find the most cost-effective one. Fortunately, whether you're considering a new policy or have one and want to reduce costs, there are multiple ways to do so ahead of January. Below, we'll break down three of them.
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How to reduce long-term care insurance costs for 2025
Here are three effective ways adults considering long-term care insurance and those who want to cut their existing long-term costs can both reduce their expenses going into 2025:
Shop around for providers
Just because you already have long-term care insurance doesn't mean that you need to stay with your current provider, particularly if competitors have better coverage options and lower costs. Similarly, if you're just starting out, it makes sense to shop around for providers to determine which is offering the most cost-effective coverage – and which one just appears to be. So start your long-term care insurance cost-cutting strategy by shopping around for providers. It's easy to do so online. Just make sure to get quotes for the same coverage amounts to complete an accurate, apples-to-apples comparison.
Start shopping for long-term care insurance providers here now.
Apply before the new year
Long-term care insurance isn't immune from the same considerations that all other insurance policies are – specifically that older applicants are costlier to insure. And that additional cost is typically passed on to the insured via higher premiums and deductibles. So don't wait for a new calendar year or birthday to pass only to get stuck paying more. You also may position yourself for fewer coverage options versus acting now. Shop around for providers first, but then strongly consider applying before the new year. This is applicable whether you're just getting started with coverage or looking to change providers.
Consider (or reconsider) your coverage options
The more robust your coverage, the higher your premium will undoubtedly be. It's worth considering your legitimate long-term care insurance needs, then, versus what may just be nice to have but not particularly valuable. For example, a shorter elimination period (the amount of time you need to pay for services on your own before insurance becomes available) may be preferential – but if you can extend it, you'll be able to reduce costs. You also may find it more affordable to skip lifetime coverage in exchange for coverage for a limited period (for example, coverage for when living at home only until you ultimately move in with a family member or loved one).
The bottom line
Long-term care insurance can provide critical protection for seniors and older adults, but it isn't free and prices are unlikely to drop anytime soon. Understanding this, applicants and current adults insured with a policy should always be exploring ways to reduce costs in a way that won't significantly compromise the protections they need. By utilizing the above steps now, adults can potentially reduce their long-term care insurance costs both in 2025 and in the following years as well.
