Long Term Care Insurance Policy Premiums are determined by the type of policy chosen, daily benefit amount to be paid, your age, number of years the policy will pay benefits, choice of inflation protection and the number of days after you qualify for the benefits before the company will start to pay benefits. If you have a pre-existing condition some companies will insure you for a higher premium. The combination of these factors decides your LTCI premium.

Various LTCI companies calculate the cost of benefits you choose in a varying manner. This reason alone can make a significant difference between premiums for similar benefits. For instance, a company calculates the premium based on every $10 of the daily benefit you choose. If for each $10 of daily benefit the company charged $95, the premium would be $950 per year for a daily benefit of $100. With a similar package of benefits costing $150 with another company, the premium would rise to $1500.

The type and amount of inflation protection chosen will also influence your LTCI policy premium. The makes the cost nearly double for those in 40s and 50s and not expecting to need care for several years. As you age your ability to change LTCI policy diminishes but probability of developing health conditions which make you ineligible to apply for new benefits increases.

Over the years your LTCI premiums can increase. At the time of buying a LTCI policy your agent provides you with a personal worksheet which explains the rate increases the company has had since 1990. The California Department of Insurance website lists the rate increases for every company that sells LTCI. Increasing future premiums became difficult for LTCI companies when California passed legislation in 2000.

It became mandatory in 2006 for companies filing for premium increases over a certain amount to offer their policy holders the choice of stop paying their premium and keep the benefits equal to the total amount of premiums already paid. Only a small amount of care will be financed by the total amount of premiums you have already paid. You will not lose all your benefits just because of a premium increase you were unable to pay.

By reducing some of the policy benefits you can negotiate with your company for lower premiums. If you have received premium increase notice or you need to lower your premium contact your local Health Insurance Counseling and Advocacy Program (HICAP) office.

Looking to find the best deal on long term care insurance rates, then visit www.olongtermcareinsurance.com to find the best advice on LTCI quotes for you.