How to Compare LTC Insurance Policies. Long term care insurance policies help provide for the cost of long-term care required for an extended period of time due to old age, chronic illness or disability. It covers care not generally covered by Medicare or Medicaid. Insurance companies around the country offer different long term care policies, thus, it is vital to compare each policy from one provider to another. Here are some tips that will help you compare LTCi policies and find the best fit for you.
Cost of Insurance
Generally the cost of long term care insurance is based on your age at the time the coverage starts and the type of coverage you choose to have. Your place of residence also affects the premium. Another factor that adds to your LTCi cost is the inflation protection rider. Inflation protection is a very useful addition because it protects your policy against the rising cost of care. To compare costs, you can request for a long term care insurance quote online.How to Compare LTC Insurance Policies
Compare Long Term Care Insurance Coverage
Choose a long term care insurance provider that offers a wide variety of care options like assisted living, home health care, nursing home care and adult day care. Since caregiver costs are expensive, find out if the policy covers in-home care. Also, make sure that the “assisted living” clause is defined broadly in the policy.
Evaluate Payment of Benefits
Another important aspect you must consider when comparing LTCi policies is how providers pay the benefits. Determine from each provider the benefit eligibility criteria that you must meet before the company will pay the benefits. Usually, these are based on you function everyday like how many activities of daily living (ADLs) you are unable to perform or whether you have a cognitive impairment. Examples of activities of daily living or ADLs are bathing, eating, dressing, using the bathroom, continence, and moving from a bed or chair.
On a national scale, the median annual cost of a nursing home’s private room is $90,520. Since 2012, the cost of home health aide services also has risen by 2.3 percent. With long term care (LTC) costs becoming more expensive every year, it is important to plan ahead how you plan to pay for long term care services as early as possible. Aside from using your savings or qualifying for government funded long term care insurance like Medicaid, long term care insurance can help ease your worry about long term care expenses.