There are certain standards you should look for when shopping for a long-term care insurance policy. The National Association of Insurance Commissioners has developed standards to protect consumers, but when shopping for a new policy look for one that includes:
- Coverage for Alzheimer’s disease and dementia
- A minimum of one year of nursing home or home health coverage (not limited to skilled care)
- Inflation protection options (including a choice between automatically increasing annually or a right to increase benefit levels periodically without providing evidence of insurability)
- An outline of coverage that clearly describes benefits, limitations and exclusions so you may shop and compare the competition
- Guarantee against cancellation
- Right to return the policy within 30 days for premium refund
- Long-term care insurance shopper guide to help you determine if long-term care insurance is a good purchase for your situation
Avoid policies that have requirements stating:
- You must first be hospitalized in order to receive nursing home or home health care benefits
- You must first receive skilled nursing home care before intermediate or custodial nursing home care
- You must first receive nursing home care before home health care
BEFORE YOU BUY LONG-TERM CARE INSURANCE…
Understand that purchasing a long-term care insurance policy is entering into a legal, binding contract. As with any other contract, it is best to have a qualified estate planner or elder law attorney review the document and discuss any points of concern in the contract before you sign. This is especially important if you feel there were any high-pressure sales tactics involved. Don’t be bullied into buying a policy, and exercise your right to have someone else review the document before you sign.
