3 Most Overlooked Long Term Care Insurance Information

The moment you consider getting a long term care insurance policy you are on your way to more comfortable and financially stable future ahead of you. If you still haven’t, then this is the time to think things through, get more familiar with long term care insurance information and try thinking about what lies ahead in your future because having this kind of insurance will definitely make yours and your family’s lives easier.

Our goal is to provide essential information to people who are not familiar with where to begin in purchasing an insurance policy. They can gain the much needed knowledge so that they would know how to begin their search for the right insurance policy.

In getting a policy, there are different factors to consider. Make sure that you are on the right path of getting the perfect insurance policy. You will have to be certain that you will be able to meet all of the necessary requirements needed to be covered before finalizing any documents.

 

Provider’s credibility

To begin with, make sure that the provider you will be choosing is a stable company with the financial strength. This first part is very important because you will be purchasing your insurance policy earlier in life, and you will be receiving its benefits much later on.

It is important that the long term care insurance company you choose is credible and financially strong so that you can be certain that they will still be there by the time that you will need to use your policy.

Refer to ratings from AM Best, Moody’s or S&P Global ratings to help you find the top long term care insurance companies.

 

AM Best Company Financial Strength Rating Scale

RatingsDefinitions
A++ and A+ SuperiorThese are the companies that display superior ability to meet their ongoing insurance obligations.
A and A- ExcellentThese are the companies that display superior ability to meet their ongoing excellent obligations.
B++ and B+ GoodThese are the companies that display a good ability to meet their ongoing insurance obligations.
B and B- FairThese are the companies that display a fair ability to meet their ongoing insurance obligations. The company’s financial strength may be affected by adverse changes in underwriting and economic conditions.
C++ and C+ MarginalThese are the companies that display a marginal ability to meet their ongoing insurance obligations. The company’s financial strength may be affected by adverse changes in underwriting and economic conditions.
C and C- WeakThese are the companies that display a weak ability to meet their ongoing insurance obligations. The company’s financial strength may be affected by adverse changes in underwriting and economic conditions.
D PoorThese are the companies that display a poor ability to meet their ongoing insurance obligations. The company’s financial strength may be affected by adverse changes in underwriting and economic conditions.

credit: www.altcp.org

Be sure to ask your provider about your coverage’s daily benefit. Long term care services are usually around $100-$200 a day. Make sure that the plan you are getting will cover the same rate.

 

Inflation trouble

Time is of the factors that you will have to worry about because as it passes, these services cost also increase. You might get coverage of $130 a day, but after the following years, it will grow into $260 per day, making your past coverage insufficient for the service that you are going to need. This is why taking the inflation of the cost of health care services into account, plans them out nicely.

 

Daily Long Term Care Rates: National Median (2016 vs. 2026)

Long Term Care Facilities2016 Rates2026 Rates
Homemaker Services$125$168
Home Health Aide$127$171
Adult Day Health Care$68$91
Assisted Living Facility$119$160
Nursing Home Semi-Private Room$225$302
Nursing Home Private Room$253$340

credit: www.genworth.com

Another thing you can do is by enabling the inflation protection feature of your insurance policy. This will protect your coverage by adjusting to the current health care rate as time goes by.

 

Double check everything

Always remember to check the services that your provider is offering. Make sure that they will cover home care, nursing home care and other health care services.

And last is to find out about your provider’s rate increase so that you will not be surprised when the time comes and you see the cost of your premium has gone up.

 

In conclusion

To summarize the above, double checking and clarifying the agreed policy is the best way to take. Doing so will give you no regrets in the future when you are receiving the health care services that you paid for. It’s also advisable to request for instant long term care insurance quotes and shop around for policies first to find a policy that is affordable and will best suit your future care needs.

Required fields *