Thinking of Buying Long Term Care Insurance?

Things you should know.

ABOUT LONG-TERM CARE INSURANCE

• A long-term care insurance policy may pay most of the costs for your care in a nursing home.  Many policies vary in coverage, you should read any policy and make sure you understand what is covered before you buy it.
• You should not buy a policy if you can't afford to pay the premiums each year.  Remember companies can increase premiums in the future.  A Potential Rate Increase Disclosure Form should be given to you so you have an idea of how and when your premium rate may change and what are your options.
• Talk honestly with your agent and they will help you find out if this kind of policy is right for you.

MEDICARE
Medicare does not pay for most long-term care.

MEDICAID

• Medicaid will generally pay for long-term care if you have very little income and few assets.  You probably should not buy extra long-term care if you are now eligible for Medicaid.
• Many people become eligible for Medicaid after they have used up their own financial resources by paying for long-term care services.
• When Medicaid pays your spouse's nursing home bills, you are allowed to keep your house and furniture, a living allowance, and some of your joint assets.
• Your choice of long-term care services may be limited if you are receiving Medicaid, contact you local state Medicaid agency.

SHOPPER'S GUIDE

Make sure the Insurance Company gives you a copy of a book called "The National Association of Insurance Commissioner's- 'A Shopper's Guide to Long-Term Care Insurance.'"  Read it Carefully.  If you decide to apply for long-term care insurance, you have 30 days to return the policy and get back your premium if you are dissatisfied for any reason and choose not to purchase the policy.


COUNSELING

Free counseling and additional information about long-term care insurance are available through your state's Senior Health insurance counseling program.  

FACILITIES

Some long-term care insurance contracts provide for benefit payments in certain facilities only if they are licensed or certified, such as is assisted living centers.  However, not all states regulate these facilities in the same way.  Also, many people move to a different state from where they purchased their long-term care insurance policy.  Read the policy carefully to determine what types of facilities qualify for benefits payments, and to determine that payment for a covered services will be made if you move out of state where they have a different licensing system for facilities then the one you purchased the policy.