Things to Remember When Choosing Insurance for Long Term Care

Some surveys show that for every year that an individual postpone or delay his application for insurance for long term care, there is an approximate 10% to 12% increase in the monthly premiums that he can avail.

According to some insurance industry experts, LTC policies are better purchased at a much younger age if the individual wants to get better and cheaper rates and monthly premiums. The reason behind this is that younger people tend to have better health conditions and do not require or need immediate medical attention and care.

But be reminded that aside from the age of the individual at the time of his policy acquisition and his present health condition, there are still some factors that may affect the cost of his insurance for long term care. His family’s medical background, and the state or specific location where he plans to receive and use his policy benefits will also affect the rates of his plan. The applicant will also be asked if he is a smoker or non-smoker because this, too, will contribute to determining the amount of the policy that will be sold to him.

Long term care plans cover and pays out the LTC services that were used and incurred by the policy owner during the validity period of his policy. The services that he may receive include adult day care, nursing homes, therapy and rehabilitation, use of other medical equipments that might need, and professional care from licensed medical experts and skilled caregivers. If the insured individual is not comfortable with staying in a nursing home, he has the option to receive his LTC policy benefits from his own home.

When choosing LTC plans, make sure that it offers the three mandatory features that an LTC policy must have: a minimum daily benefit amount, a minimum benefit coverage period, and certain levels of inflation protection. Inflation protection is essential in any policy because it keeps up with the current prices of LTC services and makes the value of a pre-acquired policy up-to-date and usable regardless if it was purchased at a much lower price. The policy owner may then take advantage of this and gets the chance to use and receive LTC that may be of higher value and amount compared to what he originally acquired.

Insurance for long term care is quite expensive and may take a large percentage of your monthly expenditure. That is why it is important to make a good decision and choose wisely the kind of policy and insurance company who will handle your account. Inquire and research about your preferred insurance company and make sure that they have strong financial resources and reliable background in the industry. You would not want to invest on a fly-by-night company who might not have the capacity to pay out the services that you will use and receive. Also, make sure that you understand fully the insurance terminologies that are included in your policy to avoid confusion and misunderstanding. The insurance company or insurance agent must explain to you clearly each and every aspect, option, and other legalities of your policy before you actually sign or purchase anything.

By: Tyra Robertson

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