7 Tips for Buying Long-Term Care Insurance
The policies are complicated, and timing is tricky. But they may be a sound purchase for some people
Reader Comments
LTC (Long Term Care)
I have a policy that i purchased when I was 52 years of age. I purchased this policy with the assurance the premiums would stay the same, as well as my coverage. Because I purchased this policy while I was young I got a good deal. Now that I'm retired and living on a fixed imcome, my Insurance Company has decided to change my premiums to a higer rate and has informed me that coverages may be effected as well. Well so much for long term care. THis policy that i have doesn't kick in unless i'm really sick ie; bed ridden, can't wipe or clean myself, ect, ect. Its insurance that only pays for assistance under the strictest rules. I understood that when I purchased the policy, but because i have no children to help me I though it necessary. Who else in my family has the time to really take care of me when i become incopacitated.... Now that the premiums are going to go up, I'm faced with canceling my poicy. There goes 10 years of paying on time and thousands of dollars to boot.. I figure if I become that ill, i'll let the state take care of me for free. Insurance companys are really destroying and erroding what little trust we have in them anymore. So to all you younger people out there who are seriously thinking about Long Term Care. Don't waste your time on it it is not worth it.
Criteria for Assisted Living Home
What is the criteria for going into an assisted living home?I know for most nursing homes there is a criteria a patient must meet. Is there something liken to this for an assisted living home? What does a family with a parent who has dimentia need to do to find a home for the parent? what questions does the family members need to ask and what does the family members need to know before visiting a facility? My parents have long term care insurance.
Unum Life Insurance
Both my husband and I have a long-term care policy through Unum. Are they a reputable company?
Educate Yourself
As the article states, long term care insurance is a bit tricky. It's great the issue has been receiving more press lately, which will hopefully lead to the public making better decisions about this type of insurance. Speak to a LTCI specialists about what your needs are now and in the future as it truly varies from person to person. Furthermore, your assets may have a big impact on whether you even need LTCI. Read more here - http://www.ltcconnects.com/resources/?page=consumer
Ian
LTC Connects
http://www.ltcconnects.com
Don't get "sold" long term care insurance. Instead, "buy".
Be sure to work with a licensed agent that specializes in this complicated field. However, be careful not to be "sold" a policy by an agent who only represents one company and presents their offering as the best.
This is not a one-size-fits-all product and it's prudent to shop from among all of the leading insurers so you can "buy" the policy that best suits your individual needs.
Pricing and underwriting can vary widely. Find a good education-based specialist representing multiple carriers and you'll surely find the best solution for you.
Gary Forman
Senior Vice President
Long Term Care Associates, Inc.
http://ltc-associates.com
shop and compare
It has been mistakenly called "nursing home insurance". Less than 37% of claims on long term care policies are for nursing homes. More than 63% of claims are for home healthcare and community care.
The funny thing about long term care insurance is that the price of a policy can vary a lot from one insurance company to the next. Each long term care policy has a different way of charging premium based upon health history, marital status, choice of benefits, and even state of residence. It pays to shop.
What most people don't realize is that group long term care insurance policies are usually more expensive and have less benefits (particularly less benefits for home healthcare) than individual policies. It pays to shop and compare all types of insurance, but especially long term care insurance.
Scott A. Olson
www.LTCInsuranceShopper.com
A Good First Step
Good advice and a good first step. Thought readers might be interested in know what others are doing. In 2008, some 83% of individuals who purchased long-term care insurance coverage did select a deductible (Elimination period) of 90-to-100 days. And 40% did select the compound inflation growth option. It's worth noting that newer policies are offering some more affordable options worth considering.
But the most important fact is that people need to start looking at this while still in relatively good health. That can save you money. For example, 67% of applicants between ages 40-49 qualify for a good health discount. That number drops to 52% for ages 50-59 and 42% for ages 60-69. Some 23% of those who waited to apply until their 60s were declined coverage for health reasons.
May I suggest readers interested in learning more go to the American Association for Long-Term Care Insurance's website. AALTCI is the industry's trade organization and there is a wealth of current and relevant info available. The link is http://www.aaltci.org/info
Jesse Slome
Executive Director
American Association for Long-Term Care Insurance
http://www.aaltci.org
