Unless your employer offers group long term care insurance, or you can get AARP group insurance, you will have to choose among providers on your own. The numbers of insurance carriers who offer long-term care, or LTC insurance is starting to decrease, and choosing carefully is becoming more important. Using the internet to find companies in your area is a great jumping off point in your search for a long term care insurance carrier. This long term care review can help get you started.
When buying LTC insurance, it's important to remember that you're not likely to use the product for many years. If you buy a policy in your 40s, it could be 30 or 40 years before you may need long term health care. For this reason, you will want to choose a long term care insurance carrier with proven financial stability and a commitment to the long term care market.
Compared to other products, LTC insurance is a newcomer. Many companies are finding it a challenging market, since they have little experience with handling claims, and less data to help them determine the premiums they need to charge to cover benefits. Smaller companies that charge low premiums to attract more business are more likely to find themselves suddenly increasing rates in their scramble to stay out of bankruptcy.
If you choose a company that is less stable, they run a greater risk of going out of business or selling out their policies. Even if your long term care insurance carrier goes under, you will retain coverage. However, you can expect rate increases from the company that has taken over your policy. In the case that your company goes under and no other company purchases their business, your policy will be covered by your state. While technically you are still insured, claiming benefits can become an extremely difficult prospect.
There are several ways to tell a company's financial stability. There are many financial rating companies that examine an insurer's finances and give them a grade. You will want to choose a long term care insurance carrier with a grade of "A" or higher. You can find these reports through a company like Moody's or Weiss, or your state's department of insurance.
You can see if your company is committed to its long term care insurance products by asking about their market share, or by what percent of their resources are devoted to this line of their business. An insurance agent should be able to answer these kinds of questions for you. In general, major companies like GE (now known as Genworth), John Hancock and MetLife have the largest share of LTC policies, but this should not stop you from also looking at smaller companies with a proven commitment to LTC.
Taking the time to do this kind of research in advance can save you money and help you avoid many pitfalls. Choosing a long term care insurance carrier makes a big difference in rates and the kind of coverage you receive. No one can guarantee that your premiums will never increase, but having a solid long term care insurance carrier can mean fewer increases, and a reduced risk of your company going under. To discover the possibilities, get a free long term care insurance quote today.
|
