There are so many things that people overlook at when shopping for long term care insurance. Though it looks like an ordinary insurance coverage, LTCi is much complicated and, of course, pricier.
Long term care insurance has been a craze these days since many adults are now aware on the diversities in later years. Alzheimer’s, dementia, multiple sclerosis, and many others are just few common age-related sicknesses that require long term treatments. If the treatments and stay in nursing home drag on too long, the person will suffer and end up impoverished. Assuming that you might be able to self-insure and you won’t need it your entire life sounds too good to be true. Remember that chronic illnesses and disabilities can strike anytime, particularly if your body and mind are already frail.
Long term care insurance is considerably the solution to the worsening problem with long term care. However, long term care insurance could turn out as the most sickening risk and jeopardize your entire assets if you fail to comprehend what it is all about.
Choose the appropriate daily benefit amount – The first thing you should look at when considering a policy is the daily benefit amount. Many policyholders mistakenly follow the benefit amount used by their friends or relatives, without knowing that the amount should complement their needs particularly their health condition. Don’t rely too much on the national average because the rates for long term care vary per state, and you could either fall short or pay higher than what is needed. The best thing you can do is canvass the prices first of various nursing homes in your area and then figure out how much you could shoulder yourself.
Determine the Elimination Period or deductible – Many consumers do not know what elimination period exactly refers to. In its simplest definition, the elimination period is the number of days you are responsible for your care without any cash out from the insurance company. For instance you buy a policy with 90-day elimination period; you are required to the expenses throughout the first 90 days. Most experts recommend 60-day or 90-day elimination period to manage out-of-pocket costs and keep the premiums affordable.
Why Bother on Inflation Protection? – Most policies offer this perk to protect the policyholder from the ever-increasing inflation rate. The inflation protection increases your daily maximum benefit but the price of premiums remains the same. This is beneficial because the person need not pay for additional premiums just to compensate the increment in the price of the nursing home; the premium automatically increases and does not require to be adjusted every year. The best inflation protection coverage automatically adds by 5% compounded annually. Expect this coverage is a bit pricier, but rest assured you are protected because your premiums remain the same even if the benefit amount increases.
Does the policy cover any medical problems?
Most insurance companies do not cover some pre-existing conditions for six months that may extend up to a year. Don’t get a policy that excludes mental disorder.
Choose only reputable and experienced insurer -
You are investing on huge financial stake for your health so it makes sense to trust only with a company that has proven track record in the insurance industry. There have been companies reported that avoided claims, so beware of those companies.
Introduction To Long Term Care CLASS Act
The Community Assistance Services and Support Act (CLASS Act) is a new program aimed at reducing long term care budget on Medicaid. Read the entire article to know what to expect from Class Act.
Avoid Long Term Care Insurance Mistakes
Long term care insurance is the best way to preserve your important assets and plan for your retirement, but it could also turn out worse without proper planning and insufficient knowledge on how it works.
Long Term Care Insurance Tax Deductions
Long-term care insurance policies offer tax deductions to help individuals as well as business owners purchase affordable coverage and sustain their care. Read the article to know how tax deduction in long term care insurance applies.
