| Considering these factors, long-term care | | | | Care Insurance," a booklet that most insurance |
| insurance may be the most important purchase | | | | agents and brokers who sell that insurance will |
| you ever make.Unfortunately, long-term care | | | | carry.How expensive is long term care insurance? |
| insurance policies are complex, and seemingly | | | | Of course, this number can vary wildly depending |
| minor details can make a tremendous difference | | | | on numerous factors, age being the most |
| in the level of care you eventually receive. You'll | | | | important. For people in their 30s, the insurance |
| need to sample a variety of policies, ask lots of | | | | may cost in the $400-per-year range, while that |
| questions and have your broker or agent explain | | | | can increase closer to $1,000 per year for those |
| the intricacies of the policy in detail because what | | | | in their 50s and 60s.What type of setting for |
| may seem minor now could mean the difference | | | | coverage does the policy provide?While the |
| between being covered or not at a crucial | | | | wording may differ per policy, there are three |
| time.The following 12 questions will help unravel | | | | basic categories into which care may fall: home |
| the complexities and gather the information hou | | | | settings, assisted living and skilled nursing facility. |
| need in shopping for a long-term care policy, | | | | The ideal policy will cover all three, since you |
| including whether you should be shopping for one | | | | never know which you'll need. You could wind up |
| at all.Why buy long-term care insurance?There are | | | | with a condition that could be cared for at home, |
| many elderly people who, due to some physical or | | | | but if your policy covers only nursing home care, |
| cognitive disease, are unable to care for | | | | you may be out of luck, or maybe prematurely |
| themselves. Long-term care insurance could | | | | forced into a nursing home.Conversely, if you're |
| potentially cover nursing homes, assisted living | | | | only covered for home and assisted living care, |
| facilities, adult day care, in-home care and other | | | | you're out of luck if your condition worsens to |
| functions that help us get through everyday life. It | | | | the point where you need the full-time skilled care |
| is NOT medical insurance; it is simply for | | | | only a home can provide.How long will the policy |
| everyday life functions and living.It is also not, | | | | pay out once it's triggered?The best is an |
| however, just for the elderly. If a person in his | | | | unlimited payout, but there are policies that cover |
| 30s were to purchase long-term care insurance, | | | | smaller increments of time, such as four years or |
| and soon after become paralyzed in an accident, | | | | six years. You'll need to weigh what you can |
| or be diagnosed with a degenerative disease, he | | | | afford against how much you're willing to gamble |
| could then be covered for life as far as | | | | you'll need. Obviously, the longer coverage is |
| functioning care -- depending on the individual | | | | provided, the better.What triggers the |
| policy.What happens if I get sick and don't have | | | | policy?Different policies dictate different reasons |
| this insurance?If a person is in need of, let's say, a | | | | for the policy to kick in, such as cognitive |
| nursing home, and is without insurance, the home | | | | impairment, failure of ability to perform daily |
| would need to be paid for out of the person's | | | | activities, and medical impairment. But not all |
| assets. Government assistance would usually not | | | | policies allow for all reasons, and some policies |
| kick in until not only that person's assets were | | | | even refuse to consider medical necessity as a |
| virtually depleted, but the assets of their spouse | | | | trigger. Make sure you understand the policy's |
| as well, if that assistance were available at all. | | | | trigger, and try to find one that will include medical |
| Therefore, anyone with assets to protect may | | | | necessity.Also, certain policies require you to be |
| want to consider this insurance.At what age | | | | hospitalized before any nursing home or home |
| should long-term care insurance be purchased?It is | | | | health care benefits kick in. Try to find a policy |
| sometimes advised that people 60 and over | | | | without this restriction.How much will it pay out |
| should be looking at this insurance. However, there | | | | every day?Some policies may cover expenses |
| are a few reasons to reconsider this advice, and | | | | totaling more than $50 or $75 per day, and |
| instead think about purchasing it as early as | | | | others may cover $200 and up. All are different. |
| possible.Reason one is that, as stated above, a | | | | Make sure you fully understand the payout policy |
| life-changing occurrence can occur at any age. If | | | | on any coverage you're considering. In doing so, |
| you are left paralyzed at 30, you could | | | | take into account the difference in potential |
| conceivably need life assistance of some sort for | | | | nursing home costs where you are. For example, |
| the next 60 years. If you're covered, you could | | | | the cost of a nursing home in New York may run |
| be set. If not, it's too late.But the second and | | | | $300 to $400 per day, while a home in the |
| less-obvious reason is that purchasing the policy at | | | | Midwest may be less than $100.What is the |
| a younger age may cost less overall than | | | | deductible?This part gets especially complex. |
| purchasing it when older, even accounting for | | | | These policies can measure the deductible not in |
| inflation. If you're shopping for this policy at a | | | | dollars, but in days. A policy's deductible may run |
| younger age, ask your financial adviser to | | | | 30 days, 60 or 120. And, the length may mean |
| compare your purchase now with a purchase at | | | | different things, depending on the policy's wording. |
| 60. You may find the numbers work more | | | | The days may be consecutive, or not. The |
| favorably if you purchase now.Where should I | | | | deductible that's right for you will depend on your |
| shop?Once you make the decision to purchase | | | | ability to cover your own costs until the policy |
| long-term care insurance, you need to go | | | | kicks in.Be sure you fully understand the |
| shopping. While there are several big insurance | | | | implications of the deductible before signing on, |
| companies that offer the insurance, you should | | | | and weigh it against your projected assets at age |
| also consider working with an independent | | | | 70 or 80. This is one topic you should definitely |
| broker.Clay Cotton is a former broker, and | | | | discuss with your financial adviser.Does the policy |
| founded the National Advisory Council for Long | | | | have inflation protection?Many policies include a |
| Term Care Insurance in late 1996. Ironically, | | | | clause that increases your benefit with inflation, |
| Cotton, now 53, hadn't yet purchased this | | | | without raising your premium. Be sure to ask |
| insurance for himself, but was preparing to in | | | | about it.Does your policy allow for shared |
| 1997 when he was diagnosed with multiple | | | | care?Some policies allow you to link your policy |
| sclerosis. Now, he's ineligible. He did however, | | | | with your spouse's, so that if your coverage runs |
| purchase a policy for his wife Suzanne, who was | | | | out, you can draw on your spouse's coverage. |
| soon after diagnosed with hepatitis C.Cotton is a | | | | Discuss with your spouse if this is something you |
| strong advocate of using independent brokers to | | | | want to have.Make sure you fully understand |
| purchase insurance (and has a list of them on his | | | | every aspect of a policy before signing on, as any |
| Web site), as opposed to agents bound to one | | | | detail could make a big difference come |
| company, who he calls "captive" agents."Avoid a | | | | redemption time.Matt McWilliams is one of the |
| captive agent," advises Cotton. "They can only sell | | | | co-founders of HometownQuotes.Com, an online |
| you their company's party line. If that company | | | | insurance quotes web site. He is originally from |
| doesn't have favorable wording on things like the | | | | Pinebluff, NC and attended Middle Tennessee |
| deductible, that's all that agent has to | | | | State University. He is considered an expert in the |
| offer."Cotton also recommends consumers read | | | | field of online insurance shopping and finding new |
| the National Association of Insurance | | | | ways to help consumers save money on their |
| Commissioners' "Shopper's Guide to Long Term | | | | insurance. |