Know How to Select the Right LTC Policy?

While some 100 insurance carriers offer long-term care insurance, only about 10 of them sell the bulk of the policies.

It is important to remember that prices will vary by company and by region, so shop around. The best bet is to contact an independent agent in your neck of the woods who offers policies from a variety of insurers.

If you do not have an independent agent contact in your area, the major carriers should be able to refer you to one.

Purchasing LTC Insurance Tips

There are a number of things to keep in mind as you peruse long-term care insurance policies.

First, the younger you are when you purchase a policy, the less you will pay for your premium. There are a number of factors that go into how much you will pay for long-term care insurance, so be sure to ask your agent any and all questions so there are no surprises when you buy the policy.

Among the items that will factor into your costs will be:

The dollar-per-day benefit - The coverage here ranges from approximately $50 a day to $300 a day. You should consider purchasing a policy that gives you coverage for all levels of care, including at home, in a nursing home or assisted living accommodations.

Duration of coverage - The majority of consumers choose policies that cover from two to five years. The longer the coverage period you have, the higher your premium will be. Keep in mind that lifetime policies are the costliest.

The period of time paid for services prior to the insurance kicking in - This is the time known as the deductible or elimination period, which can range from 0 to 100 days. The greater the time period, the lower the premium will be.

Inflation protection - You will want to make sure that your daily benefit stays pace with inflation. Consumers can go for a 5 percent inflation rider and not a CPI inflation rider. While a 5 percent rider is more expensive, the premium will be fixed when you acquire the policy. Using the CPI option, your premium will go up each time there is an inflation adjustment and the increase is centered on the newly adjusted benefit level for your age at the time of the adjustment.

Non forfeiture protection for missed payments - A number of policies allow you to select if you want to have your coverage remain in effect for a select period of time if you miss payments or to have it remain in effect for life, however at a decreased benefit.