Where to Buy Long Term Care Insurance
You should not wait too long to buy a long-term care insurance policy. Generally, 50’s is the right age to buy this policy since if you wait longer your health may deteriorate and you may have to pay higher premiums. Long-term care insurance covers the expenses incurred for long term care services – either at home or in a facility.
After you decide to buy a long-term care insurance policy, the first step is to start looking for the most suitable policy and the insurer. For this, you have to do some research on your own and gather all the relevant information. You can take the best decision when you are well-informed.
Sources of Long Term Care Insurance
Maximum number of people buy long term care insurance on their own. For them private insurance companies are the biggest source of insurance providers.You have to go through the specified application process and after approval, start paying the monthly premiums to continue the coverage. You can buy the policy through the company directly or through an authorized agent. You need to make sure that you understand the terms of the policy clearly.
Some employers, both private and government bodies, offer long term care insurance coverage to their employees. The advantage of buying through an employer is the access to lower group rates which are not available to individual buyers. The employer does not pay the premiums like they do with regular health insurance – the employee has to pay the premium. Another advantage is the ease of approval when applying through an employer in a group. Insurance companies are less stringent about the approval process when applied in a group.
People who buy individual long-term care insurance policies have another option – to buy a partnership-qualified plan. These policies though issued by private companies are linked with the state Medicaid program. They offer some additional advantages to the policyholder as compared to a regular non-partnership qualified plan.
The state Medicaid program provides coverage for long term care services but for that the person has to spend down his assets to $2000. If you buy a partnership-qualified long-term care plan, you can keep your assets above this amount and still get Medicaid coverage for long term care services. If a person has a coverage of $100,000 through a partnership-qualified plan, he or she can apply for Medicaid coverage and keep assets worth $100,000 plus $2000 (Medicaid asset threshold). These plans also let you use Medicaid coverage after your policy’s coverage is exhausted. All these partnership-qualified long-term care insurance plans must include inflation-protection features as required by the state regulations. This guarantees a higher dollar-value addition to the coverage over time than what was originally bought at the start of the plan.This partnership-qualified plan option may not be available in every state.
Although there are many private insurance companies selling long term care insurance policies, these are regulated by state laws, including the nature of the product and the insurer who gets to sell them.You should get in touch with the Department of Insurance of your state in order to get complete information about long term care insurance plans, available options and the companies selling them in your state.
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Traditional vs Hybrid Long Term Care Insurance
Help protect your savings from the costs of
care NOT COVERED
by traditional insurances or Government programs, like Medicare.
It helps you choose where you receive care and avoid the nursing
- 40% receiving long-term care are working-age adults, ages of
- About 70% over age 65 will need long-term care services in their
lifetime. By 2020, this number is expected to exceed 12 million.*
Financially strong A.M Best rated insurers with low complaint ratios
related to claims will send you quotes directly and promptly. You
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Sample Long-Term Care Insurance Savings
Up to 30% Spousal/Partner Discount
Up to 15% Preferred Health Discount
Up to 5% Small Business Discount
* Discounts are not cumulative and vary by state.