Questions to Ask Before Buying Long-Term Care Insurance
Is inflation protection provided for in the policy?
This is a must-have, considering how the cost of long-term care rises every year.
Does the policy guarantee that the premiums will never increase?
It wouldn’t benefit you to have a policy that had affordable premiums when you applied for it and then raised the rates every couple of years.
Does the policy cover home health care and all levels of nursing home care? This is comprehensive coverage you want to have. It should include skilled, intermediate, and custodial care.
Does the policy provide comprehensive benefits for home care? You want to be sure the policy covers less severe impairments.
Is the maximum benefit period one year or longer? Two or five years is preferable.
Is the policy guaranteed to be renewable? Make sure that your policy will never be canceled as long as you pay your premiums on time.
Is the waiting period affordable? Medicare generally covers the first 20 days of a medical event then the next 80 with some cost sharing. Ninety day waits are typical on long term care contracts.
Will the policy cover dementia that’s diagnosed later in life? Most policies will cover conditions like dementia and Alzheimer’s.
What do you know about the insurance company? The company you select must have solid financial ratings and a history of paying its claims. Check out A.M. Best, Standard and Poor’s, or Moody’s rating services.