Experts Advise on Dos and Don’ts for Long-Term Care Insurance

As you approach retirement, it’s crucial to consider long-term care insurance. To save money on this coverage, it’s best to buy it before reaching the age of 60, as the cost is heavily influenced by your health. However, there may also be affordable policy choices for older Americans.

Choosing the right long-term care insurance policy can be challenging. After all, there are numerous coverage alternatives available, and it is critical to select an insurance that matches your specific requirements.

If you are seeking for the best long-term care insurance policy for your needs, consider the following dos and don’ts while shopping:

Do: Be proactive

“Buy when your health and finances allow it,” advises Kelly Augspurger, CSA and instructor at the Certification for Long-Term Care program. “Your health enables you to buy long-term care insurance and your wealth pays the premium.”

Taking preemptive steps can make long-term care coverage more affordable.

“The healthier and younger you are, the less expensive it will be and more options you will have,” said Augspurger.

Don’t: Think Medicare will cover your long-term care needs

“Don’t make the mistake of thinking Medicare will cover your long-term care needs,” warns Larry Nisenson, CGO of Assured Allies. “This is one of the most common and biggest mistakes that consumers make.”

Medicare usually does not cover long-term care services. Medicaid may cover certain expenses, however there are limitations to keep in mind, such as:

  • Income limits: To be eligible for Medicaid long-term care coverage, you must earn less than $2,829 per month (as a single applicant).
  • Asset limits: If you have more than $2,000 in assets as a single applicant over the age of 65, your Medicaid application for long-term care coverage will most likely be denied. However, there are several states with much higher limitations. For example, in New York, the cap is $30,182.
  • Coverage limits: If you qualify for Medicaid, your long-term care coverage may be limited.

Do: Consider inflation protection

“The cost of care continues to rise over time, so it’s ideal if your coverage grows over time too,” said Augspurger.

Inflation protection should be considered while comparing policies. However, there are additional things to consider while shopping.

“The most common inflation protection is an automatic 3% compound,” says Augspurger. “This means your monthly/daily benefit and total pool of money grows by that percentage each year.”

Don’t: Think you’re uninsurable

“Don’t think you’re uninsurable, even if you were denied coverage previously,” Nisenson goes on to advise. “Newer products are different and some even include guaranteed medical acceptance.”

As a result, there’s a strong possibility you’re insurable – though you may have to look around for possibilities.

Do: Consider shared benefits

“If you’re married or have a partner, see if you can share benefits,” said Augspurger. “This is a great way to get more coverage without having to buy a bigger policy on your own.”

If you utilize all of your benefits, you may be able to tap into your spouse’s benefits, or there may be a third pool of benefits available to you, according to Augspurger.

Don’t: Rely on your friends to be long-term care experts

Neighbors and friends may occasionally express their ideas about your long-term care needs. However, Nisenson advises against relying on them “to be your expert on long-term care needs, unless they happen to be a licensed agent.”

This is because your long-term care requirements are unique to you, and the business is complex.

“LTC needs are very personal and require a significant understanding of the available products and how to properly customize them for each policyholder,” Nisenson said.

Do: Get in touch with a professional

Finally, your needs are unlikely to be the same as those of others. For example, some people intend to age at home, while others intend to move into assisted living facilities. Alternatively, some may require coverage for family caregivers, while others would rely on more formal care. There may also be disparities in medical requirements and economical constraints.

Given the different demands that long-term care insurance must address from person to person, it may be helpful to consult with a professional to verify that your policy offers the coverage you require.

“Speak with a licensed agent since there are so many new products in the market,” said Nisenson.

Conclusion

Long-term care insurance can help you prepare for the rising expense of care as you age. When comparing your options, keep the dos and don’ts listed above in mind to ensure that the coverage you’re contemplating is right for you.

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