I’d like to share some tips on LTCi (Long Term Care insurance). The first thing to consider is if it makes sense for you or your family members financially. LTCi is expensive and the premiums can increase quite a bit on an existing policy. That being said, LTCi can come in very handy during some types of disability. Most policies require you to have a very limiting disability in order for the policy to kick in. Don’t think cleaning and grocery shopping. Think bed baths and diaper changes.
According to Consumer Reports, if your net worth, excluding your home is more than $300,000, LTCi may be a good option for you. Otherwise, they don’t recommend it.
If you want LTCi, shop around. I’ve seen wildly different policies, some paying out for housekeeping duties — most do not. Make the rounds and check out the companies online at the state insurance commissioner‘a site. Look at their history of raising rates and any complaints against them.
the most important information to gather about policies is:
elimination or waiting period when you would have to be receiving services, but would not be reimbursed.
daily maximum payout
policy lifetime maximum payout
services covered and number of concurrent services required by the policy. They normally require 2 or 3 personal care (hygeine) related services each time the care is given or dementia to the extent that care is needed for health and safety.
There you have it. My synopsis of the important issues around Long Term Care insurance.
Feel free to call me with any questions at 908-240-9777. Namaste.