So you’ve decided that you will likely require long-term care at some point in your life and that even if you don’t, you’d still rather rest assured safe than sorry. So you have now decided you wish to purchase a long-term care policy, but what’s next? How and where will you find a policy? More importantly once found, what kind of questions should you be asking to determine that the policy is a right fit for you? These are just some of the questions on the minds of many if not all those who choose to obtain and shop for a long-term care insurance policy. Luckily, we are here to help you! First you should note that you may purchase a policy directly from insurers or work with a licensed agent to help guide you through the process and direct any questions you may have. Regardless of which approach you take, here are some questions you should be asking yourself or your agent upon selecting a policy:
1. What does my Long term care insurance policy cover?
Long term care insurance is designed to help cover the high costs of long-term care. The types of long-term care covered typically include care administered within a nursing home, assisted living facility, or at home/ most places one would receive care. Long -term care accounts for help with daily living activities such as getting dressed, eating, transportation, and bathing.
2. How long does the elimination period last?
An elimination period indicates the time between any incurred injuries and illnesses and when the insurer will then begin receiving benefits.
3. How much is the maximum daily benefit?
The typical standard long- term care insurance policy will allot you $50-$250 per day. This daily benefit amount would likely account for approximately 4-10 hours of daily care and assistance. Consider each amount and translate into hours of care.
4. How much is the maximum lifetime benefit?
This amount is calculated by taking the amount of benefit period days offered within the policy, multiplied by the daily benefit amount.
5. What is an inflation rider?
This rider help protect your long-term care benefit amount against damaging inflation. If not included, this can and should be added to your long term care insurance plan. That will adjust your benefits over time to account for inflation.
6. Is there any waiver of premium?
Most policies will include a waiver of premium. This waiver states conditions in which the policyholder would not be responsible for paying fees. Once someone will need to start using their policy they will stop paying.
7. Are there any add on benefits?
Many policies give you the option to add on benefits, spouse riders, or restoration of benefits, to be included in your policy. Consider each option to evaluate if the addition makes sense for you.
Carefully consider all of these questions before selecting a policy to ensure you understand and have selected the most appropriate benefits/ features for you individual long-term care insurance policy. If you or someone you love is interested in Long Term Care Insurance be sure to checkout: LTC TREE for more information.