Here are some of the basics when considering enrolling onto long-term care insurance:
» Your health condition is the basis for your qualification; standards vary among insurers.
» Benefit choices include monthly or daily payments; length of the “exclusion period” when you pay costs yourself; how many years of benefit payments; and yearly inflation factor. More benefits generally mean higher premiums.
» Consider “partnership” policies issued in your State, which can shield assets like your home while qualifying for Medicaid assistance.
» Look for discounts for good health, for making annual premium payments or other features.
» Shop around. Rates for the same coverage vary among insurers.
» Insurers can raise rates on all holders of a certain policy but not on individuals.
» Claims require an impaired ability to perform “activities of daily living” — bathing, dressing, eating, toileting and transferring from place to place.
» Some policies also allow claims for home health care and assisted living.
» You likely will buy a policy once, since policies become more expensive and harder to get
as you age.
» Younger applicants pay lower rates but probably pay for a longer time.
» Work with an insurance agent you trust and who knows the business well.
Source: American Association for Long-Term Care Insurance