It has been proven many times that owning long term care insurance has saved a significant amount of funds. It has prevented bankruptcy and provided numerous elderly Americans adequate health care. However, there are still many who seem to be lacking the proper information in buying long term care insurance, hence the creation of the list of long term care insurance guidelines for 2018.
Long Term Care Insurance Guidelines To Follow
1. Know the daily or monthly benefit sum
There are times when people forget to inquire about how much their policy can fund. It would be important to know how much the benefits can pay for daily or monthly coverage. The amount of benefit varies from what is offered by the company. Just be sure to get benefits that do not cost more than the standard rates. Getting benefits that go over the normal costs would be throwing away your savings.
2. Be sure to get the Inflation Protection
Be mindful of the rising cost of care. Knowing about the amount of coverage is one thing but being prepared for rising rates is another. Never forget to get the inflation protection. It will keep your policy from being underfunded by the time of the claim period and once you need to use your policy.
3. Be familiar with coverage types
Currently, there are two kinds of offered policies and these are the facility care only and comprehensive. The facility care only policies are self-explanatory and are only used for facility care services. The comprehensive policies can be composed of combinations of nursing home care with home health care, as well as assisted living.
4. Waiting or elimination period
The wait or elimination time is the period that is allocated before benefits for long term care are received. This is also the time where all long term care costs are paid out of the pocket before the beginning of receiving the benefits.
5. Maximum lifetime benefit
The coverage sum that a policy can provide within the policy holder’s lifetime is called the maximum lifetime benefit. Some policies are sometimes offered with a lifetime monetary value. This value can also be equal to the waiting time. There are also unlimited coverage offers.
6. Pre-existing conditions clause
Policies can exclude specific medical conditions if there is a pre-existing condition clause included. Such conditions include familiar long term care relying on diseases such as diabetes, drug abuse, alcoholism, as well as HIV or AIDS-related illnesses. Be sure to ask your long term care insurance agent about such clauses.
7. Joint or combined long term care
There are couples who are given the opportunity to buy long term care insurance that has “share-care.” These types of policies combine the total amount of coverage from two policies. If one of the partners passes away, whoever survives will receive the remainder of the remaining coverage value.
With other long term care policies, some payments are eligible for deductions with federal income tax. These are commonly referred to as tax-qualified policies.
These are the eight things that are commonly left out when discussing or purchasing long term care insurance. Be sure to keep these in mind for maximized policies.