Tuesday, November 17, 2015

Comparing Long Term Care Insurance Policies

Less than two decades from now, the number of Americans aged 65 and older will double from 8
million to 16 million. The U.S. Department of Health and Human Services reported that at least 7 in 10 of them will develop a condition that would make long term care necessary. With this many people who will soon need long term care, planning how to pay for services has become an integral aspect of a responsible retirement planning.

There are many ways to pay for long term care but for most advocates for seniors’ welfare, having a good long term care insurance policy is the most secured, reliable and cost-effective way to prepare for this eventual need. But with so many insurance companies offering long term care coverage, choosing the best policy can be a tedious process.

Below are some tips for comparing long term care insurance policies.

1.     Compare LTC insurance providers

More the cost of premiums, your primary consideration in buying long term care insurance should be choosing the most trustworthy and reliable insurance provider. If you end up with the wrong insurance provider, you could wind up paying more for fewer benefits. Worse, you could end up not receiving any benefits at all.

Consider the following factors in assessing the trustworthiness and reliability of an insurance provider:

·       Overall financial rating
·       Number and nature of lawsuits and complaints received
·       Years of operation
·       Percentage of paid claims over claims applications
·       General market share

2.     Compare Benefits

Once you have a shortlist of the LTC insurance company you want to do business with, compare the benefits included in the policies they are offering. Focus on features and benefits that cater to your individual preferences and needs. For instance, if you prefer to grow old in your home, look for indemnity long term care insurance because it has less restrictions on how to use benefits. Therefore, you can use the benefits to pay for a family caregiver or fund home modification projects which might be necessary if you want to receive care at home.

3.     Compare Costs

After identifying policies that cater to your needs and preferences, you can now compare their costs. Choose a policy that provides more benefits at a lower cost.

Insurance consumers today are fortunate because they do not need to spend hours just to get quotes from different companies. There are now a lot of long term care websites that give free ltc insurance quotes from major insurance providers. These quotes make it easy for consumers to see the prevailing rates of services, and will therefore make the entire process of comparing long term care insurance policies less difficult.

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