Factors to Consider

Your options when making the selection:

There are many insurance companies with varying policies and packages.  There are factors to consider when exploring your options:

Cost

This depends on the age of the applicant. In most scenarios, the younger the person is the lower the premium will be.  18 years old is the minimum with certain companies and usually somewhere in the 80’s is the cut off from underwriting for a new policy.

Applicant’s Health 

The application includes many health questions and depending on the age of the applicant, there is a possibility of a face-to- face interview with a nurse during the underwriting process.  Every company has their own application, set of questions, and requirements. The health history of the applicant and their age will affect the premium of the policy. The time to purchase the policy is when you are considered in good health.   There are many health conditions that are uninsurable and may preclude the applicant from getting coverage, but most often the underwriting process is easier than one would think. When the policy is issued it is delivered without a pre-existing waiting period which means that the claim will be paid once the policy is approved and issued.

LTC Policy Coverage

Most policies that are sold today include all types of care, whether at home, or an assisted living facility or nursing home.  But the purchaser has to know how much is built into the base coverage so that they can ensure that the plan is the most flexible.  The plan should allow for coverage in all types of venues.  Policies should also include adult day care which means that these services are covered in community centers within the insured’s area.

LTC Company’s Viability

The strength of a company is crucial when selecting a plan. The insurance companies are rated by leading agencies such Moody’s, and AM Best.  These ratings measure the ability of the company to meet their obligations to their insured clientele. The history of the carrier is important to consider when choosing the company. If the company has been selling for more than 10 years they have the knowledge and experience in knowing how to price their product and be confident that they will be able to pay out claims now and in the future.