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Friday, October 17, 2014

How can I get the most out of my long term care insurance?

Most people who get their LTCi policy want it for the same practical reasons: to secure their future care needs, their assets, as well as the financial stability of the people that matter to them.
However, many are not aware of how they can maximize the value of an LTCi policy. In order to get the most out of your insurance, you need to consider certain benefits when buying your policy and how they can affect you or the type of care you can receive.

Here are LTCi benefits/options you should consider:

1. Guaranteed Policy
Make sure to ask about the life of your LTCi policy and the rules you need to follow, otherwise, it may cause the insurance company to cancel your policy.

2. Qualified policy
Both tax-qualified and non-qualified LTCi policies are, in general, considered tax-free. However, non-qualified benefit payments can be traced by IRS and opting for a tax-qualified policy may be a stress-free decision to make.

3. Custodial Nursing Home Care and Home Health Care
Considering these benefits will give you the option of receiving care at home or nursing home care, whichever is needed. Many prefer to receive care at home out of convenience.

4. Cost-of-Living Adjustment (COLA)
Your chosen daily benefit is increased yearly by COLA in order for it to keep up with inflation. Having COLA is significant to your LTCi policy.

5. The Financial Strength Rating of the Insurer
Get peace of mind by getting your policy from a reliable company by checking its financial strength rating through insurance rating sites such as A.M. Best or J.D. Power.

In order for you to maximize your LTCi policy, you need to be practical with your priorities, specifically with what you can afford and getting benefits that will meet your needs.