Paying for the Right Long Term Care Insurance Policy
Having long term care insurance could spare you and your family from the high cost of care, only if you manage to clinch the right policy. Some people with long term care insurance policies wind up filing a complaint against their insurers after their claims have been refused.
In the end, their efforts turned futile.
Each long term care insurance (LTCI) policy stipulates different terms and conditions so it is important to read through a potential policy before signing it. It is not advisable to compare your policy with that of a relative’s or a friend’s as there are no two LTCI policies that are exactly alike.
Even the LTCI policies of twins who look exactly alike cannot be identical because they have different health care requirements since they have separate bodies and naturally don’t share the same brain, blood vessels, stomach, and other body organs.
To be able to get hold of an LTCI policy that would be ideal for your health care needs and budget, the best thing to do is to work with a licensed LTCI representative. Such professional will be able to help you design a policy that will be suitable for you especially if he or she is affiliated with the country’s leading LTCI carriers. Before your agent can start her work, though, you have to provide her with the necessary information.
Among the things she should need are the following:
- Your present health condition (don’t conceal pre-existing conditions if you have any)
- Family health history
- Any vices such as smoking, drinking, etc.
- Preferred LTC setting
- Number of years you intend to receive care
Designing Long Term Care Insurance Policies
Each LTCI company has its own underwriter who determines the eligibility of an applicant or buyer for coverage. However, this does not mean that the underwriter will have total control over a buyer’s policy.
For instance, a 55-year-old buyer of an LTCI policy with a maximum daily benefit amount of $200 and a five-year benefit period was told that his annual premium would be $1,100. If this amount exceeds his budget and he feels that he won’t be able to maintain it, the buyer can change some of the variables of his policy to reduce his premium.
Some people reduce their maximum benefit amount but retain a 5% annually compounded inflation protection to ensure that their benefits will keep up with inflation. Meanwhile, others would opt for full nursing home coverage and acquire partial coverage only for in-home care.
There are many ways to cut down your policy’s annual premium, just see to it that you do it the right way to avoid being underinsured as this could result in bigger out-of-pocket expenses. While you’re in the process of negotiating for a policy, don’t forget your objective in buying one and that is to spare yourself and your family from unreasonable LTC costs.
You’ve surpassed so many challenges in life so what’s one more? Take time to study the different types of long term care insurance policies and should you end up requiring LTC you won’t feel the pain of its cost.
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