You can do without certain things in life but some are just too indispensable not only to your future but your family’s welfare, as well, like long term care insurance (LTCI). Although many people think this insurance product is optional, long term care (LTC) specialists think otherwise.
Every year the cost of care increases by at least 5%, and thus paying for care out-of-pocket is next to impossible. Most people who bravely took the risk of self-insuring wound up wiping out their assets before turning to Medicaid.
Elder care specialists and LTC professionals have never failed to remind the public to plan their future health care needs wisely in order to avoid sacrificing their hard-earned money to prohibitive long term care (LTC) costs. Now one of the ideal ways to plan their LTC, according to financial advisers, is to invest in a comprehensive LTCI policy as this product will allow them to obtain quality care at a minimum cost or no cost at all.
However, the price of an LTCI policy cannot be extensively discussed here as it is contingent on the health care requirements of each policy buyer. For instance, an individual who is at risk of developing a chronic illness which will subject him to many years of skilled care is likely to pay a higher premium for his LTCI coverage than one who is not predisposed to a chronic disease.
Potential LTCI policyholders are advised to identify their future health care needs first and the level or levels of care that they could possibly require before deciding which policy to buy. Some people are unaware that they are overspending on their LTCI premiums because they did not weigh their options very well before putting down their money for a specific type of coverage.
Long Term Care Insurance
Buying LTCI policy is simply like shopping for clothes or a new pair of shoes. You have to check out different kinds of brands, fit them all, and assess the price of each item to be certain that you do not run short of cash.
In clothes or shoe shopping it is absolutely all right not to be finicky or particular about branded products but when buying an LTCI policy you have to be very meticulous. Buying your policy in haste is like pushing yourself into the financial pit where getting out is close to impossible.
You have to know the background of the company from which you intend to buy your LTCI policy. Check its tenure in the industry and the insurance claims that it has satisfied for the past five years or so. You can also check the ratings given to it by insurance rating agencies such as A.M. Best Company, Standard & Poor’s, Duff & Phelps, and Moody’s among others. If the company has a history of complaints of all sorts, look elsewhere because this is an omen of what you are likely to experience.
Long term care insurance is an expensive investment so take your time in choosing where to buy your coverage lest you end up wasting money which took you years, tears and sweat to earn.