Unfortunately, at that point in time when a loved one is stricken by an illness, injury or even recovering from major surgery is not the best time to negotiate the terms, conditions and costs of long term health care insurance. Ideally, it's best to consider such coverage before a need arises.
Reasons for Purchasing Long Term Care Insurance
One of the primary reasons for purchasing long term care insurance is to protect accumulated assets. Most often care is required for people who have spent many years in the work force and who have accumulated a retirement nest egg. Not wanting to see the hard earned savings dwindle away paying for the cost of long term care, purchasing an insurance policy is a way of covering the cost of health care and protecting retirement assets.
The secondary reason for purchasing coverage is to alleviate a potential burden on the family. More than just the potential financial burden, there is the logistic and emotional cost of caring for an incapacitated family member. Two income families hardly have the resources to take care of themselves and their children. Adding the need to care for an injured or sick loved one sometimes is just not possible.
There is also the "quiet night's sleep" that insurance provides. By purchasing a long term care insurance policy, people are able to access the doctors, specialists and facilities necessary to properly treat the condition.
What to Look for When Purchasing Long Term Care Insurance
Search for a financially sound insurance company: Because long term care insurance claims have a long tail (according to American Association for Long Term Care 92% of claims last for a duration of three to five years), it is important to purchase coverage from an insurance company that is financially sound and will be around when coverage is needed. Obtaining financial information from reporting services such as AM Best, Standard and Poors or Moody's will pay off in the long run.
Seek competitive quotes from a broker or several insurance agents. Long term insurance policies come in various flavors with a dizzying array of terms and conditions. Since insurance agents have an allegiance to the company they represent, it's best to employ the services of several agents to get competitive quotes.
Insurance brokers, on the other hand, have access to several insurance companies and represent the insured in the shopping process. Brokers are able to offer several different coverage options. Having one person provide several options is attractive, but there is a potential downside. Since brokers have access to several companies, they may not have the in-depth product knowledge for each product offered as an agent would. Agents have access to one company only and are well versed on the product features.
Understand the reimbursement process. Find out how the insurance company pays claims before binding coverage. There have been instances where long term care facilities require payment at the beginning of the month while the insurance company only processed claims at the end of the month. In such cases, the insured has to pay out of pocket and receive reimbursement afterwards. For some folks this is not a problem. However, if footing the bill up front and receiving reimbursement afterwards is not financially feasible, it's best to confirm the claim payment process beforehand.
Reasons for Purchasing Long Term Care Insurance
One of the primary reasons for purchasing long term care insurance is to protect accumulated assets. Most often care is required for people who have spent many years in the work force and who have accumulated a retirement nest egg. Not wanting to see the hard earned savings dwindle away paying for the cost of long term care, purchasing an insurance policy is a way of covering the cost of health care and protecting retirement assets.
The secondary reason for purchasing coverage is to alleviate a potential burden on the family. More than just the potential financial burden, there is the logistic and emotional cost of caring for an incapacitated family member. Two income families hardly have the resources to take care of themselves and their children. Adding the need to care for an injured or sick loved one sometimes is just not possible.
There is also the "quiet night's sleep" that insurance provides. By purchasing a long term care insurance policy, people are able to access the doctors, specialists and facilities necessary to properly treat the condition.
What to Look for When Purchasing Long Term Care Insurance
Search for a financially sound insurance company: Because long term care insurance claims have a long tail (according to American Association for Long Term Care 92% of claims last for a duration of three to five years), it is important to purchase coverage from an insurance company that is financially sound and will be around when coverage is needed. Obtaining financial information from reporting services such as AM Best, Standard and Poors or Moody's will pay off in the long run.
Seek competitive quotes from a broker or several insurance agents. Long term insurance policies come in various flavors with a dizzying array of terms and conditions. Since insurance agents have an allegiance to the company they represent, it's best to employ the services of several agents to get competitive quotes.
Insurance brokers, on the other hand, have access to several insurance companies and represent the insured in the shopping process. Brokers are able to offer several different coverage options. Having one person provide several options is attractive, but there is a potential downside. Since brokers have access to several companies, they may not have the in-depth product knowledge for each product offered as an agent would. Agents have access to one company only and are well versed on the product features.
Understand the reimbursement process. Find out how the insurance company pays claims before binding coverage. There have been instances where long term care facilities require payment at the beginning of the month while the insurance company only processed claims at the end of the month. In such cases, the insured has to pay out of pocket and receive reimbursement afterwards. For some folks this is not a problem. However, if footing the bill up front and receiving reimbursement afterwards is not financially feasible, it's best to confirm the claim payment process beforehand.
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