Taking out long-term health insurance implies that the risk of bearing the costs of the services of a nursing home or residential care is transferred to an insurance company instead of a premium. The decision to be covered is perhaps the most important decision a person makes. However, with careful analysis, the long-term care insurance (LTC) coverage process involves decision-making on two separate issues. The first is: do I really need long-term care insurance (LTC)? If the answer to the first question is affirmative, another question arises: what should you pay attention to when getting coverage? The answers to these two questions can be found step by step:
1. Do you want to know if you need LTC insurance? A calculation is made of your self-assured capital. For example, if a person is worth more than a million dollars, it can be cost effective for him to put part of his corpus into a fund that can meet his future long-term care needs.
2. Calculate your ability to depend on state-funded programs to cover any long-term care expenses.
3. If you are sure you need LTC insurance, contact several nursing or adult nursing homes and speak to a long-term care insurance expert.
4. Try to gather information about several insurance companies that have a good track record in claims payment and customer satisfaction ratings.
5. View the average healthcare costs per day per person for the different healthcare institutions.
6. Calculate the average daily cost you need for long-term care.
7. Contact an insurance agent that specializes in long-term health insurance and determine how much insurance is sufficient for you.
8. Apply to a number of different insurance companies to ensure that you have identified your characteristics consistently and can make an objective cost comparison.
In the current LTC insurance contract, do not forget to pay attention to the following points:
1. Which services are covered by the policy?
2. What does the policy pay per day for long-term care?
3. How long do policy payments last in a nursing home and at home?
4. Does the policy offer a maximum lifetime benefit? If so, how much is it?
5. Does the policy have a maximum coverage period for each inclusion period? If so, how much is it?
6. How long does it take for the policy to take effect?
7. How soon will the benefits start?
8. Do mental disorders and conditions such as Alzheimer’s disease fall under the policy?
9. Does the policy require a prior stay in a nursing home for home care coverage?
10. Is the policy extension guaranteed?
11. What is the valid age to be registered?
12. Are there provisions for waiver of premium?
13. After what period are the premiums waived?
14. Does the policy offer a forfeiture?
15. Has the policy been adjusted for inflation?