Why Not Design Your Own Long Term Care Insurance Policy?
Buyers of long term care insurance policies such as yourself have to take into account so many important factors before deciding to buy a specific type of policy. Study your long term care insurance policy options carefully to avoid overspending on the annual premium or ending up underinsured.
Compared to previous years, there are more Americans in this time and age that acknowledge the importance of having a long term care insurance (LTCI) policy to cover their long term care (LTC) requirements. Despite this realization, only 10 million Americans have successfully secured their policies.
If you go around to ask uninsured folks why they remain without a tax qualified LTCI policy they’ll give you one reason — they cannot afford the annual premium. Perhaps for a five-year coverage that reason would be acceptable.
Unless your monthly income is below the poverty line you are capable of purchasing an LTCI policy as you have many selections. Insurance companies selling LTCI policies do not require everybody to purchase policies that will cover their total LTC expenses. You, for example, can opt for partial coverage if that is what you can afford.
If you were able to follow last year’s 3 in 4 Need More LTC campaign which was participated in by leading LTCI carriers then you probably remember what Dr. Marion Somers said about the price of an LTCI policy. According to the renowned elder care specialist and author of Elder Care Made Easier, the price of a potential policy is what you would negotiate for.
Which of the Long Term Care Insurance Policy Options is Ideal?
Do not make the mistake of settling for a policy with a very low annual premium because your health care needs will be put on the line.
Remember that your objective in buying an LTCI policy should be to receive quality LTC services and asset protection.
Now if you think you cannot afford the standard reimbursement policy, let alone indemnity plans, you can opt for policies that comply with the rules and regulations of the Partnership Program. From the word partnership, this type of policy is the result of the collaborative efforts of private insurance companies and government agencies that are dedicated to providing highly satisfactory LTC to every single American.
With a Partnership qualified LTCI policy, you can settle for a short benefit period to save on your annual premium. In case you would need further care in the future, after using up your benefits, you can apply for Medicaid without spending down your assets since Partnership LTCI policies carry a special feature called the Medicaid Asset Protection.
For every dollar that you receive from your Partnership policy, you get to protect a dollar of your assets. For instance, if the total amount of benefits that you have received from your policy is $230,000 then you get to exempt your assets worth $230,000 from Medicaid’s spend-down rule.
Another option to cut down your policy’s annual premium is a partial coverage. Just be sure that your nest egg is dependable to avoid the risk of running out of resources.
Better yet, speak to a licensed LTCI agent to be further educated on your long term care insurance policy options and the advantages of each.
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