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Saturday, November 8, 2014

What should I want in my LTCi policy?

Many of us will need long term care at some point in our lives and the best way to pay for it is with long term care insurance. However, those who are interested in buying this policy are confused with what an ideal LTCi policy should have.
Those who have recently decided to purchase long term care insurance are faced with many questions. By knowing the terms used in policies, it will be easier to understand how it works and determine what you should get.
Here are the components you should include in your LTCi policy:
1.       Variable Coverage
You will want your policy to have flexible coverage. It should be able to cover more than one form of care such as nursing home or in-home caregivers so it leaves you the option to decide where to receive care at your most convenient time.

2.       Inflation Protection
Although the inflation protection feature is common with today’s standards, you would rather be certain that it’s a part of your policy and that you understand how it works.
It will increase your long term care benefit amount automatically and will guarantee that you will be able to receive care without worrying about making payments.

3.       70% Minimum Daily Benefit
Your daily benefit dictates how much is allocated for your care expenses. You will not want to just choose the cheapest benefit amount but instead, find out how much the average daily cost of care in your area is and try to get at least 70% of that yearly.

4.       Independent Care Management
In making a claim, your insurance provider will send a representative to determine your benefits.
You will want to make sure that your policy lets you decide to have an independent licensed health care provider to handle your care instead of an employee of your insurer.
Remember to identify your future long term care needs with your doctor. These future needs will determine the services that your LTCi policy has to cover. Don’t forget to consider tax from the state you will receive care from.
When it comes to applying for an LTCi policy, you will want your policy to work for you, in terms of covering expenses, and be adjusted to your medical or non-medical needs.

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Sources: 
http://personalinsure.about.com/od/longtermcare/a/aa062908a.htm
http://www.completelongtermcare.com/resources/policy-types.aspx