Long Term Care

In the early eighties we began presenting long-term care policies.  Our agency saw the need for a policy to take care of assisted living facilities with long term care insurance Alvin. Currently, about 43 percent of people over the age of 65 will spend some time in a skilled nursing facility according to Medicare.  Unfortunately, the consumers were not convinced of the need.  Times have changed.

The time to begin checking into a long-term care policy is before you know you will need one.  This is an underwritten product.  If the company underwriter picks up on anything abnormal, your application will either be surcharged or declined.  Naturally, your age is a primary underwriting criteria.  Generally your policy premium will be significantly less if your age is below sixty.  Acquiring a policy while in your fifties might be a great idea.

There are several things to consider while making your choice of products.

How long of a benefit period should you choose?  The National Nursing Home Survey reports the average length of stay is 2.44 years.  The vast majority of the cases will not exceed 5 years, but we highly recommend the unlimited lifetime benefit.

You will choose a waiting period.  Your choices will generally range from zero days to a year.  The waiting period is a form of a deductible.  A 30-day waiting period means you are responsible for the first month while you are in the facility.  The longer the waiting periods will generate lower premiums.  A 90-day waiting period provides a significant premium savings over the zero day waiting period for long term care Insurance Alvin.

Daily benefit is another consideration.  We advise you to know what the area homes charge daily.  They will greatly vary.  The difference could easily be a $100 per day.  The 2010 MetLife Market Survey of Long-Term Care Costs indicated the Houston Texas area had an average of a $203 daily private room rate and a $144 daily semi-private room rate.

An important endorsement is the inflation rider. You can choose a simple, compounded, or no daily benefit inflation rate increase.  In the past, a simple 5 percent inflation rider has been adequate. That means each year your daily benefit would go up 5% of the original daily room rate.

Which company to choose?  Sometimes the lowest premium is not the best choice.  The company that has been the most stable in the business might be superior.  Long-term care policies are not policies that you will change often.  Many times you will only have one long-term care policy.  As a result, you original choice is a very important choice.