Sorting Through Long-term Care Insurance Confusion

Americans are living longer and many will need help in the future with basic daily activities such as bathing and housekeeping.  Others will face chronic illnesses and need long-term care.  Whether a person needs assisted living, a nursing home or home care the bills for these services can quickly add up.  Insurance coverage is necessary so that a person is able to receive the proper care with a sense of some financial stability.

Tips for Purchasing the Right Policy for You

1. Research – Shop around for the right policy for you and your family.  Consider what the plan will cover, length of coverage and any limitations on what type of care are covered. Get a second opinion from a financial planner or an elder-law attorney.

2. Be realistic – Few people will need lifetime benefits.  Think about your options and future before buying.  It may seem necessary at the time, but you may be paying for coverage you will never use.

3. Buy Early – The younger you are when you purchase Long-term Care coverage, the cheaper the payment will be.  Be advised that your premium may increase at some point during the term of the policy.  The cost of insurance changes with the price of claims.  Also keep in mind that cheaper policies are often the ones that increase because the premiums that the company makes cannot support the claim amounts.

4. Look for Longevity of Insurer – You want the insurer to stay in business for as long as you need the policy so choose a company that has a good reputation and will be in business for as long as you need them.

5. Think Ahead to Retirement – Make sure the payments will be affordable after retirement.

6. Read the Fine Print – Make sure you understand your coverage.  Do not be afraid to ask questions.  You are securing your future and want to be sure that there is no confusion when the time comes to use the policy.

 
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