Here are all the articles I've written about Rules to follow. Enjoy!

March 14th, 2010

Four Simple Rules for Buying Long-Term Care Insurance

First, always consult with a qualified broker, such as The Insurance Mom!

Second, buy only what is affordable.  Do not stretch to buy a policy that covers 100% of anticipated future costs.  It is much smarter to buy the amount of coverage for which you are sure you can keep making the premium payments.  It makes no sense to buy a policy today that you won’t be able to afford in a few years;  you will get no benefits at all if that happens.   Focus on what is achievable.  It’s better to buy a policy that will cover 50% of future costs than no policy at all.

Third, buy a policy with a Compound Inflation Rider.   The cost of care rises each year; you need a policy with benefits that will also increase.   Look for a policy with a built-in 5% Compound Inflation Rider.

Fourth, aim for the shortest possible Elimination Period.  This is the time before your policy kicks in.  For example, if you have a 30-day elimination period, you will pay for the first 30 days out of your own pocket.  The shorter the Elimination Period the more expensive the policy.   If the Elimination Period is 90 days or longer, be sure you have other assets that you could use to pay for your care for that length of time.

Now…. don’t you feel smarter?!

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