subject: Comparing Various Long Term Care Insurance Policies [print this page] Comparing Various Long Term Care Insurance Policies
Consumers are often confused when shopping for long term care insurance. Although they are already aware this insurance is crucial to securing their health during retirement, they become discouraged when long term care policiestend to be more complex than health or life insurance. The following are factors that fuel the intricacies among LTCi policies:
The staggering price of long term care, particularly the rates of nursing home care
Expensive rates among private insurance
Various bells and whistles offered by insurance companies baffle consumers on which particular features are suitable for them
The relatively new market of long term care
Insurance companies offer various long term care policies; thus, it is important to compare each policy from insurer to insurer. Heed from these tips in comparing LTCi policies
1. Summarize all the Activities of Daily Living (ADLs) you need. Check each insurer if it provides coverage with those ADLs and the qualifications for receiving benefits. A policy that pays for more ADLS with few qualifications is worth considering.
2. Inflation protection may add up the price of LTCi policies, but this rider has significant advantages amidst the cost. There's no truth to saying long term care premiums will remain low because the prices of LTC change every year, so don't believe agents who claim to provide you with the cheapest LTC policy. Only inflation protection can help your policy maximize its benefits against future price hike. There are various types of inflation protection, but a 5% compound inflation protection is worth it.
3. Nursing home rates are different from one state to the other. Private rooms are much expensive than shared rooms. When checking the rates in a particular state, say New York, shop around and see the rates of each company then evaluate the variables that make the price lower or higher than the other.
4. Choose a policy that offers various levels of care such as home care, nursing home care, and assisted living because your needs might change after few months or a year. You may find home health care to be less expensive, but it pays off if you consider other options in case your condition worsens.
5. Check if the policy defines clearly what "home care," "assisted living" or other types of care entail and the corresponding benefits you may receive. Avoid policies with obscure and incomplete explanation of the benefits it provide and the terms for eligibility to ensure future claims. This is because the management may change any time, and it would be problematic for the new officer in charge of claims to decide quickly if the definitions in the policy are vague. Always ask the agent to explain everything you don't understand. Seek guidance from a financial planner or LTCi expert to make your policy shopping less tedious.
6. Ask for long term care insurance quote from different insurance companies. The results can guide you in picking the best company that meets your needs and budget. Make sure you have five or more companies for comparison.
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