Long term care is a major concern
of American families. Studies have shown that Americans rank long term
care second, behind saving for retirement, when prioritizing financial
needs. Unfortunately, many Americans do not want to think about needing
long term care and, therefore, fail to plan for it. Others wrongly
assume that Medicare or standard health insurance policies will cover
the costs of long term care services. As a result of this failure to
plan, tens of thousands of Americans are impoverished each year by
the costs of long term care.
The best time to plan for long term
care is before it is needed. Start thinking about long term care when
you plan for retirement. If you are already retired, it is not too late
to begin planning for potential long term care needs.
Private long term care insurance is
an excellent way to finance long term care. This brochure will guide
you through the important process of selecting the right long term care
insurance policy. This booklet provides information on long term care
services, what to look for in a long term care insurance policy, and
a glossary of terms.
Finding a good policy will take some
effort, but the effort will be worthwhile. Here are some steps to take
when considering the decision to purchase a long term care insurance
policy:
- Talk to your financial planner or insurance agent about whether long
term care insurance makes sense for you.
- Ask your financial advisor to recommend a company and a policy.
- Check with insurance rating services to make sure the insurance company
you are considering is financially secure.
- Call your state insurance department and ask about the company and
its record in your state.
- Make sure your insurance agent is licensed to sell long term care
insurance in your state.
- Review all the details and options of the policy. Do not rely just
on the marketing materials or outline of coverage.
- Make sure you understand all the provisions before you purchase
any policy.
- Ask your insurance agent questions. Seek guidance from the state
insurance commission office, the Area Agency on Aging, or local senior
centers.
The decision to purchase long term care insurance is not a simple one, but
thorough investigation and thoughtful planning now can offer you and your family
financial protection for the future, and, most importantly, peace of mind.
