What You Need to Know Before Buying a Long-Term Care Policy – Financeforhealth.com

Although much has been said about the benefits and importance of a long term care policy, many Americans are still not familiar with a lot of the basic features found in this type of coverage. This is the reason why private insurance providers, together with some government agencies, are continuously holding campaigns to share information and educate consumers about different long term care policies.

A long term care policy is there to cover the expenses of the insured person when it comes to custodial care, i.e. skilled and non-skilled medical services and daily living assistance. The services include, but not limited to, nursing and adult day care facilities, rehabilitation and therapy, use of medical equipments and facilities, and care from licensed medical professionals. Although they offer nursing home assistance, the insured individual still has the option to receive care at the comfort of his own home if he wishes to.

Insurance companies offer flexible insurance rates and packages for those who intend to acquire their own LTC policy. It would be an easier purchase if the interested buyer already has basic knowledge of how this kind of insurance plan works. Insurance industry professionals are willing and ready to assist those potential LTC policy owners especially those who have urgent needs for such policies.

Before you plunge into getting a long term care policy of your own or for a loved one, be sure that the insurance provider of your choice has the financial capacity to shoulder your LTC needs in the future. You would not want to invest on a fly-by-night insurance company that will only give you a hard time in collecting the payment for your LTC services. It is best if you conduct a background check on the insurance company and read some testimonials from past clients or from people who also tried to purchase a policy from them.  Talk to different insurance companies before you make your decision, or better yet, find a reliable LTC agent who has access to a lot of insurance providers, and who can get you a good quote.

As an interested applicant, you should not be ashamed of asking the insurance agent or anyone from your insurance provider regarding the terminologies or any other insurance jargons that you are not familiar with. They have the responsibility to explain to you all confusing details regarding your policy and make everything clear and transparent. Ask questions for this is the best way for you to end up with an appropriate plan—one that suits your needs and is affordable.

Another thing to take note is that a long term care policy with a shorter benefit period will be cheaper than those plans that provide lifetime LTC benefits. Based on studies, an average person aged 65 and above only requires at least three years of LTC insurance coverage in his lifetime. This duration is enough to shoulder the entire professional medical care that his health condition demands.

Also, verify other benefits offered by your insurance provider. Be sure to look at your daily benefit amount, benefit period, elimination period, and most importantly, inflation protection. The latter is considered as the most essential feature of any LTC policy for it adjusts the value of your plan to conform to the latest costs of LTC services.

 

Sources:

  • http://www.ltcfeds.com/start/aboutltc_whatis.html
  • http://www.naic.org/documents/consumer_alert_ltc.htm

 

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