Tips in Purchasing Long Term Care Insurance |
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| By: Jenny Nielsen | ||||
The family values we have these days shrink due to societal and demographical changes. It is more common to find adults staying in nursing homes instead of staying in their homes. Although home care is a preferred setting, the families of these seniors are hesitant of providing care at home for some reasons. The result is they are forced to stay in nursing homes until they die, or have the social services to adopt them. Most seniors think that their problem can be resolved by applying for Medicaid coverage or leave everything to the health insurance company. Your health insurance will not cover long term care services and Medicaid will not help you if you are not impoverished. In order to qualify for Medicaid, you have to meet the asset limit or give your assets for estate recovery. The costs of long term care seem cruel that would leave anyone into thinking “How will I finance my care without affecting the savings for my family?” The daily rates of nursing homes throughout the country are ridiculously high that a low-income or middle-income individual finds it hard to sustain. Long term care insurance is said to be the solution to this problem. However, if you plan to have an LTC insurance coverage, there are so many things you have to consider before signing up. First, research a good company in your area or state with strong and credible financial history. You can always go to your state’s Human Affairs department and ask for the list of top insurer in your area, or you could referrals from friends or relatives. Next, you should choose a plan. Remember that the premiums vary on 1.) your age 2.) the monthly or daily benefit amount 3.) the length of the coverage. The cost is also affected by insurance riders such as the elimination period, inflation protection, and survivorship. You might not know how long you will need to pay for the care, because you don’t want to either overpay or pay less than what is needed. In determining the length of coverage you should assess the following: 1.) your health over the last 10 years 2.) check if your family has history of Alzheimer’s dementia, multiple sclerosis and other chronic illnesses 3.) the national average claims and 4.) the affordability of the LTCi premium. Ask for a quote from your insurer and, once you have agreed on everything, the next step is to check if your health qualifies in the so-called underwriting procedure. This underwriting process will determine if you are insurable. Don’t worry about the privacy because your health record is protected and you are not obliged to purchase a policy until you have passed the underwriting. You also reserve the right to turn down the policy within 30 days or the free look period. |
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| Article Source: http://yourfinance.co.za | ||||
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