Buying Tips:

Long-Term Care Insurance

When to buy? Usually experts say if you have assets, not including housing, of between $100,000 and $3 Million. The theory is, on the low end, you will end up being a ward of the state and you will qualify for assistance. On the upper end, you have the assets to self-fund your multi-year care assistance expense. What Coverages do Long Term Care Policies provide? They should cover nursing home expenses and home health care expenses after a waiting period. Some also provide training for family members who have to take on home health care duties. Some policies even provide some lost wage coverage for family members who provide “at home” care. They also provide funds to maintain the home during the illness/disability.

What triggers coverage?
Policies vary, but they have to do with “Activities of Daily Living” (called ADL’s). Some policies respond when only one of these (which include dressing, bathing, bathroom use, eating, continence and transferring from bed, chair or wheelchair).

Does Medicare provide this coverage?
Only a little bit. They will pay for your nursing home stay and home help only after a hospitalized event of three days minimum and have strict limitations. Coverage is limited to 100 days (during the 100 days, benefits are incrementally reduced. Only 20 days carry full coverage). Medicare only pays for professional assistance – not family members.

Ways to reduce Long Term Care Coverage:

• Get a longer waiting period (we suggest 90 days)
• Review the term of coverage (3- 5 years is optimal).
• Buy with your spouse (discounted by 30% on average)

The above suggestions are based on sound insurance principles. The waiting period is your deductible. We believe in spending your money to insure major events only. The term is based on the fact that, based on a recent study of 1.6 million Long Term Care policies, only 5.6% of claims lasted longer than 3 years. 85% lasted less than 2 years.

Don’t hurry!
My average Long Term Care sale takes 6 months, as it should. When you are ready, let’s explore this area together. Any agent, who rushes you into a sale, is not a good Long Term Care agent. We have on-line comparisons of over 300 products, through an LTC service that we subscribe to. We can review actual nursing home data, as well as policy options and trends. They change very quickly for this coverage. You will not buy after the first meeting, so come in, relax, and let’s review the latest forms, coverages and data together.