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How to compare Long Term Care Insurance Policies
Since LTCI is a relatively new type of insurance product, policy types vary. So before you buy LTCI, it's important to shop around and compare several policies. Read the Outline of Coverage portion of each policy carefully, and make sure you understand all of the benefits, exclusions, and provisions. Once you find a policy you like, be sure to check insurance company ratings from services such as A. M. Best, Moody's, and Standard & Poor's to make sure that the company is financially stable.
When comparing policies, you'll want to pay close attention to these common provisions:
- Elimination period: The period of time (anywhere from 0 to 365 days) before the insurance policy will begin paying benefits. Also known as the waiting period.
- Duration of benefits: The limitations placed on the benefits you can receive (e.g., up to $150,000, two years).
- Nursing home daily benefit: The amount of coverage you select as your daily benefit (e.g., $50, $400).
- Optional inflation rider: Protection against inflation.
- Range of care: Coverage for different levels of care: skilled, intermediate, and/or custodial.
- Pre-existing conditions: The waiting period (e.g., six months) imposed before coverage will go into effect regarding treatment for preexisting conditions.
- Other exclusions: Whether or not certain conditions are covered (e.g., Alzheimer's or Parkinson's disease).
- Premium increases: Whether or not your premiums will increase during the policy period.
- Guaranteed renew ability: The opportunity for you to renew the policy and maintain your coverage despite any changes in your health.
- Grace period for late payment: The period during which the policy will remain in effect if you are late paying the premium.
- Return of premium: Return of premium or nonforfeiture benefits if you cancel your policy after paying premiums for a number of years.
- Prior hospitalization: Whether or not a hospital stay is required before you can qualify for LTCI benefits.
- In New York State, make sure you get the Tax Credit
When comparing LTCI policies, you may wish to seek assistance. Consult a financial professional, attorney, or accountant for more information.
You are in good health and are insurable. They you want to get a quote for Long Term Care Insurance. Call Les Robinson today for a free quote and your tax credit with long term care insurance.
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