When
purchasing long term care insurance, you
must make decisions on each of the following long term care
insurance policy features. You should design a
policy to best suits your needs and budget.
Daily/Monthly
Benefit Limit - most long term care insurance pays
benefits by the day or month. The benefits usually range
from $50 to $250 per day, or $1,500 to $7,500 per month.
Benefit
Period - long term care insurance allows the insured
to choose the benefit length. It is usually 2,3
or 5 years for at home nursing assistance or a lifetime
benefit for long term nursing home assistance.
Home
Health Coverage - most qualified long term care insurance policies
will cover home health assistance, or assistance received
in assisted living facilities or adult daycare center.
(Tip:
Purchase a long term care insurance policy where no hospitalization
is required)
When
Benefits Start - most policies include an elimination
period or waiting period before benefit payments begin.
Waiting periods can range from 30 to 365 days from the time
the assistance begins. Some policies require a second
elimination period for a second stay.
The waiting period should be no longer than six months
and should match your emergency savings to cover
costs while waiting during the elimination period.
Inflation
Protection - this option increases your
daily benefit to keep pace with rising health care costs. Without
inflation protection, you would be forced to pay the extra
health care costs personally.
(Tip:
Inflation protection is one of the most costly, yet most valuable
additions to your insurance policy)
Cash
Value - some life insurance policies combine the
benefits of cash value and death benefit along with long term
care insurance protection. Traditional long term care
insurance, like automobile insurance does not provide a cash
value benefit.
Waiver
of Premium - some long term care allows you to stop
paying future premiums once the policyholder is on a
claim.
Nonforfeiture
Benefits - many long term care policies provide
a return of some or all premiums (tax-qualified polices can
not offer a full return), or the chance to acquire a reduced
paid-up policy if you drop the policy.
Renewable
- virtually all personal insurance policies are guaranteed
renewable. As long as you pay the premium on time, the
term of your policy cannot be cancelled.
Eligible
tax payers may be able to deduct medical and dental
expenses!
(Tip:
Some long term care insurance companies offer discounts of
up to 10% or 20% when both spouses buy insurance.)
GET A FREE LONG TERM CARE QUOTE.
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