How long does the policy payout? The benefit period is the amount of time benefits are paid and can range from a year to a lifetime, with higher premiums paid for longer terms.
What are the requirements to become eligible to receive benefits? Some policies have specific requirements before policyholders are eligible for payout.
Is there a waiting period for preexisting conditions and how long is the period? Certain preexisting conditions may not be covered for a specified period of time.
What is the length of the elimination period? The longer a policyholder can pay their own expenses, the lower the premiums charged for the policy but the insured must be sure they can cover those costs.
Can the policy be upgraded down the road to include additional benefits? If policyholders find themselves in an improved financial situation, they can add benefits if the policy can be upgraded.
Does the policy take into consideration inflation? The cost of medical care continually rises and the policy should be able to cover costs five or ten years from today.
Will the proceeds of the policy be tax-qualified so no taxes are paid on the benefits? Most benefits are not taxed but policyholders should carefully verify the terms. Non tax-qualified policies are not tax deductible and may increase tax liability, thus reducing the value of the benefits.
Each policy is different and is essential to read all the features, limitation, benefits and terms of a policy before making a final decision.
Rates and Qualifying for Long Term Care Insurance
Some companies ask a few questions about health while other ask for more details before issuing a long term care insurance policy. All questions should be answered honestly to ensure coverage when it is needed most. If dishonest responses are given, the company can refuse to pay claims or cancel the policy.
Several factors are considered when determining the rates charged for long term care insurance policies including age, elimination period, health, benefit duration and amount and the area where the policy is purchased. The younger and healthier applicants are, the lower the premiums will be.
Once considered a luxury, long term care insurance is a necessity now that people are living longer and require special care during their senior years.