Making Sense of LTC Insurance Coverage
Making a decision about buying long term care (LTC) insurance is very important, but how is "long term care" defined?
Long term care refers to the services that include and go beyond medical or nursing care required for people who have disabilities or chronic illnesses. Such services can take place in nursing homes, assisted living facilities, or in the home.
It's crucial to understand what LTC means for you or your loved one. Things to consider are: is LTC a temporary or lifetime need? Can an existing insurance policy or Medicare/Medicaid help? For a long term care policy what to look for regarding your own personal needs is the first step.
Once you have determined what sort of long term care is needed for you or your family member, it's time to take all of your insurance policies out and have a good look at them. What kind of coverage is already in place with your health insurance and life insurance?
Chances are, LTC is barely covered or not covered at all. Medicare/Medicaid requires adherence to specific criteria and also has strict limitations in place, which translates to little or no help. In terms of a long term care policy what to look for can help you!
Unless you have an LTC policy, or are planning to purchase one, costs for LTC care will have to come out of your saved assets. That nearly always means depleting the nest egg that you have worked your entire life to put into place. And once that's gone, what will you do?
The answer is to start right now--this very day--and get a long term care insurance policy in place. There is no better way to complement your regular health care coverage, and if researched properly, LTC need not be overly expensive.
When researching a long term care insurance policy what to look for are the first questions to answer.
A few things to look for....
- A guaranteed renewal regardless of age or physical/mental health.
- Benefits protection for inflation and the rising cost of long term care.
- A non-forfeiture benefit in case of accidental or even purposeful cancellation.
- Proof of claims already paid out.
Then move on to other tasks that you, as a paying consumer, can help control.
Things like...
- Understanding your policy terms.
- Buying only from a reputable insurer.
- Getting at least three LTC policy quotes.
- Fully understanding terms like "waiting period".
Make sure when studying your long term care policy what to look for has already been addressed beforehand. Be careful when buying long term care insurance for your or your loved one!
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