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Do You Have The Right Long Term Care Insurance?
By: Tony Brings
Long term care insurance is usually taken by those who are old and need help in
their every day duties. Like dressing and bathing. These products can be really
useful as they reduce costs and the LTC pays for the individual's needs right
from the beginning. If the person pays for his or her needs, then it might
become an expensive matter where as a single premium paid to the insurance
company can keep it cheap and simple. The product can pay for nursing 24 hours a
day and 7 days a week.
Why is it necessary anyway? Old people who want to be independent and not rely
on their children for help can go for Long term insurance. It gives them
satisfaction of self-sufficiency while not depleting their savings.
There are two types of long term care policies that are currently being sold:
Tax Qualified and Non-Tax Qualified. The Non-Tax Qualified was formerly called
Traditional Long Term Care insurance. This type has been sold for over 30 years.
It often includes a condition attached. This condition requires that the
patient's own doctor, or that doctor in conjunction with someone from the
insurance company, can state that the patient needs care for any medical reason
and the policy will pay.
The Tax Qualified long term care insurance policies do not have a any
conditions. The only thing required for purchasing this type of policy is that
if a person is not able to do 2 or more things for 90 days. For example,
reminder help, bathing and dressing assistance ETC.
However, when buying a long term policy one needs to be aware and understand
what is involved. Frauds are becoming more and more commmon. As sales agents are
paid more commission, they want to give false information to sell the policy.
Since you will be paying thousands of dollars it is better to be well informed
so that you do not suffer in the future and quality service is given to you when
needed.
Remember, if you have any doubts what the contract means and whether or not it
will protect you after spending thousands in premiums and to avoid risking
litigation in the future, it is far more sensible to pay for an informed opinion
at the outset.
The key to having your expectations met when you submit a claim for benefits and
to avoid being defrauded is to believe nothing you are told by a sales agent and
to rely upon only what you read and understand in the policy. Ignore what you
may read in promotional brochures. In 1994 a California appellate court declined
to rule that a misleading advertising brochure was actionable and held that all
that was needed to determine the relationship between the consumer and the
insurance company was to read the policy.
In the absence of an informed legal opinion, deal only with an established and
respected insurance brokerage firm that has been in your community for years. An
insurance broker is an independent agent for many companies and normally knows
what the market is offering. Such a person can explain the advantages and
disadvantages of various policies on the market.
Buying a long term insurance policy requires care and proper judgement. Go for a
reputed policy provider and you will be safe. Be careful not to trust everything
a sales agent tells you. Avoiding fraud is the most important thing and do not
compromise on it. Take your time on a decision and you will be satisfied when
you need the coverage.
About the Author:
Tony Brings is the editor of A1 LTC options. Get Long term care insurance
information and policy comparison. Also offer local quotes to cover homecare and
nursing home care. http://www.a1ltcoptions.info |
