Should you be paying for long-term care insurance? If yes, what’s the best policy for you? We often help clients answer these questions. Comparing policies head-on requires cutting through the hype and confusing/misleading information, and asking very targeted questions. Following is a checklist excerpted from our guide to buying long-term care insurance.
Get These Answered When Comparing Policies
#1. Will all the services I’m likely to ever need be covered?
***Does the policy cover all the different types of care: skilled nursing; custodial care; and home health care?
#2. Is the policy renewable, regardless of my age or physical/mental condition?
#3. When do I qualify for benefits — what events will trigger the payouts?
***Does the policy limit benefits because of any pre-existing conditions?
#4. When do payouts actually begin after the qualifying event?
***Is there a waiting or elimination period?
#5. How much will the policy pay out?
***What is the minimum and maximum daily benefit amount I can purchase?
#5. For how many years will the policy pay benefits?
#6. Will my benefits increase annually, along with the rate of inflation?
***If yes, by how much?
***If not, what is the cost of an inflation rider?
#8. Does this policy qualify for tax benefits (is it tax-qualified)? If yes, the payouts will not be taxed.
#9. Can I upgrade this policy if the insurance company offers a policy that’s a better option for me?
#10. What health conditions am I not covered for?