Long Term Care Insurance Policy

In lieu of the fact that people are living longer today than ever before, long-term care policies are increasingly beginning to be more extensive and cover a wider range of services. When looking for a long-term care insurance policy, it is important to make a decision after considering several factors.

Financial Strength

Since long-term care is essentially for a long-term and most people do not require its use till several years after issue, it is essential that the company you choose is financially stable.

Inflation protection

This is again a very important precautionary measure because of the extended time period of long-term care. Due to inflation, the average costs for nursing and other services will be expected to increase over time; hence inflation options need to be selected during the time of issue.

Comprehensive Coverage

Since the services you may require and the location you will require them in cannot be predicted, it is important to put a lot of thought and select as comprehensive a policy as possible, within the limits of a reasonable premium.

Claims Process

The Claims Process is another very important factor to consider when selecting a carrier. Information on the percentage of claims that are paid by the company and the process of filing a claim and receiving benefits should be obtained while buying a policy.

Waiting/Elimination Period

Waiting periods are comparable to deductibles in insurance policies. This is the time period up to which you will have to pay for your long-term care before you can avail of the company’s benefits.

Premiums

Though most policies come with a no-price-increase guarantee for a fixed period of time, sometimes premiums may be increased for an entire “class” of policy holders. Hence, it might be helpful to speak with your agent about the tendency of the particular carrier to increase premiums.

Maximum Benefit and Maximum Daily Benefit

Maximum benefit is the number of years the company will pay for your long-term care and daily benefit is the maximum it will pay for long-term care during a claim period. Again, it is important to carefully anticipate your requirements before choosing these options.