Purchasing a Long Term Care Insurance policy is an important step in securing your financial future. But how do you know that you’re making the right decision on benefits, the right company, and policy features? Each of these Long Term Care Insurance buying tips are covered on our site, with summaries provided here.
Long Term Care Insurance Buying Tips
Money Saving Tips
When it comes to Long Term Care Insurance, only a few companies sell as many policies as we do. Because there are a myriad of budget-busting riders and options that are either added automatically or “by accident” by agents. You as a buyer must be on the lookout for whether the person advising you is looking out for your well being or is selling a policy that may be bigger than you really want just to trigger higher commissions. Get a second opinion from us if you’re unsure.
Should I buy my group Long Term Care plan?
Probably not. If you’re in good health, you’ll probably want to pass on the group plan. This is because group plans lump everyone in the company into the same “rate class.” If you’re healthy, you’ll miss out on discounts of up to 20% for good health, marital discounts or partner discounts and be at the mercy of your co-workers health. Group coverages often pare back two MAJOR pieces of the puzzle: Inflation protection & Home health care percentage. Unfortunately, a lot of consumers just skip right past this and end up with a sub par Long Term Care plan. The problem is when they go to use the Long Term Care Insurance when the are 85 years old, inflation has eroded their purchasing power because the group plan lacked automatic inflation protection.
The “Federal” LTC plan covers millions of Federal employees and retirees. Over 75% of the time there are better rates to be found in individual plans. Learn more at our Federal Long Term Care Insurance Primer.
Should I buy the plan my Financial Advisor is selling?
Maybe, but shop first! Millions of Long Term Care policies are sold by financial advisors who only sell a few policies a year. While your financial advisor is probably good at navigating the mutual fund arena, it’s likely that insurance isn’t their focus. Consider speaking with someone who is well-versed in all of the options on these policies, and not just dusting off the sales brochure to read it to you. Also consider trying the “online advantage” we offer.
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