Paying for Long-Term Care Insurance: One-Time, Short-Term, or Ongoing Payments
Long-term care insurance can be paid all at once or over time. With the coverage Staying Power offers, you can pay one time, over 5 or 10 years, until age 65, or until age 100, annually or monthly. Shorter schedules mean higher payments that end sooner. Longer schedules spread smaller payments over more years.
What are the options?
Single payment: pay once, using savings you already have
5 or 10 years: higher payments for a set period, then you’re done
Until age 65: finish paying around retirement
Until age 100: the smallest payments, spread over the most years
Some schedules are only available at certain issue ages. The NAIC describes the same two approaches, continuous payment and limited payment (single pay, 10- or 20-pay, or pay-to-65), and notes that premiums usually cost less under continuous payment because limited payment collects a greater portion of the premium with each payment. (NAIC Shopper’s Guide)
Why pay over a shorter period?
You finish paying sooner, often before retirement income replaces a paycheck.
Why spread payments out?
Smaller payments are easier on monthly cash flow, and you aren’t committing a large sum up front.
What if you stop paying?
With the coverage we offer, if you stop paying scheduled premiums, the portion of the long-term care benefit you’ve already paid for is locked in as a reduced paid-up benefit. See What Happens If I Never Need Long-Term Care?.
Can the payment change?
With the coverage we offer, premiums are guaranteed not to increase, as long as they’re paid as scheduled and you take no loans or withdrawals.
Staying Power is a licensed insurance agency that shows payment schedules side by side.
A licensed agent can show you schedules side by side. Start with a few questions.
Related reading: What Determines Your Long-Term Care Insurance Premium? and When Should You Buy Long-Term Care Insurance?.
Frequently asked questions
Can I pay monthly or annually?
With the coverage we offer, multi-year schedules can be paid annually or monthly.
Which schedule is best?
It depends on your cash flow, savings, and when you plan to retire. An agent can compare them for your situation.
Can I change my payment schedule later?
Ask your agent, since options vary by policy.
