Another oldie but a goodie (with some updates) about Long Term Care Insurance. Is it time for you or your parents to think about Long Term Care Insurance? Here’s 4 quick rules about LTC . . .
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First, always consult with a qualified broker, like The Insurance Mom!
Second, buy a plan that’s affordable. Don’t go hog wild and buy a plan that’ll cover 100% of anticipated future costs just because you think it’s better. It is much smarter to buy a policy you can afford to pay for every month. If you can’t pay the premium, what’s the point? You’ll get no benefits at all if that happens! It’s better to buy a policy that will cover at least half of future costs than buy no policy at all.
Third, buy a policy that keeps up with inflation (that’s called a Compound Inflation Rider). The cost of care rises every year. Get a policy that keeps up with the times. Look for a policy with a built-in 5% Compound Inflation Rider.
Fourth, aim for the shortest possible waiting period for the plan to kick in (that’s called the Elimination Period). For example, if you have a 30-day elimination period, you’ll pay for the first 30 days of expenses out of your own pocket. The shorter the Elimination Period, the more expensive the policy will be. If the Elimination Period is 90 days or longer, be sure you have the moo-la to cover you!
Now…. don’t you feel smarter?! You get a cookie for reading!
