Even seniors with good physical and mental health may need long term care insurance policies. They may contract serious illnesses, or go through unexpected accidents that lead to disabilities. As a senior, buy a long term care insurance policy and prepare for future risks. However, long term care comparisons are the initial steps in getting a suitable policy.
There are different factors to consider when buying a long term care insurance policy. These are premiums and rates, policy benefits, coverage and facilities, and inflation protection.
Premiums and Rates
When looking for a long term care insurance policy, you do not necessarily have to buy one from the lowest prices. It might be cheap, but it also lacks coverage. Buy a policy that gives you the most coverage that you need, yet has premiums that you can afford.
In addition, you may want to compare elimination periods among policies. Elimination period pertains to the length of time before you can receive long term care benefits. It can range from one month to one year, and there are policies that do not even have elimination periods. Take note that a shorter elimination period means more expenses for a policy.
Policy benefits, on the other hand, refer to payments from long term care insurance policies. When doing long term care comparisons, you have to take into account the benefit period. In addition, also consider the benefit amount and benefit method.
You can opt to receive long term care benefits within a specific period of time. You can choose to get them from within two years to as long as your lifetime. The longer the time, the more expensive your payments are. Make sure that you can afford to pay for benefits within the time period you choose.
Aside from benefit period, you may also assess the benefit amount in the process of comparing long term care insurance policies. Select a policy where you are satisfied with the amount of daily payments. Benefit amounts range from $50 to more than $300 per day.
When you look for a policy, it is important that you know the benefit method – or the manner of how you spend money to get benefits. In the reimbursement method, there is coverage for certain long term care expenses and you pay back directly to the insurance provider. In the indemnity method, you receive daily benefits in the amount stated in the insurance policy.
Coverage and Facilities
Policies may cover a variety of long term care facilities. Choose one with a long term care facility that accommodates not only your long term care requirements but also your personal choice. Options for facilities include nursing homes and adult day care. The other options are home health care, retirement communities, hospice care, and assisted living facilities.
Some long term care insurance policies – especially partnership policies – feature inflation protection. If you want to add more to your benefits, then get a policy with insurance protection. Without it, there are no additional benefits even if you pay more for a policy. The type of inflation protection depends on your age.
Long term care comparisons are important. They help you get a compatible long term care insurance policy and avoid future complications with a policy’s rules.