Shopper's Guide To Long Term Care Insurance

What Shopping Tips Should You Keep in Mind?
Here are some points to keep in mind as you shop.

Ask questions. If you have questions about the agent, the insurance company or the policy, contact your state insurance department or insurance counseling program. (A directory starts on page 56.) Make sure the company is reputable and is licensed to sell long term care insurance policies in your state.

Check with several companies and agents. Contacting several companies (and agents) before you buy is wise. Be sure to compare benefits, the types of facilities you have to be in to get coverage, the limits on your coverage, what’s excluded, and, of course, the premium. (Policies that have the same coverage and benefits may not cost the same.)

Check out the companies’ rate increase histories. Ask companies about their rate increase histories and whether they have increased the rates on the long term care insurance policies that they sell. Ask to see a company’s personal worksheet that includes this information. Some state insurance commissioners annually prepare a consumer rate guide for long term care insurance. These guides may include an overview of long-term care insurance, a list of companies selling long term care insurance in your state, the types of benefits and policies you can buy (both as an individual and as a member of a group), and a rate history of each company that sells long-term care insurance in your state. Some guides even include examples of different coverage types and combinations and provide rates to assist consumers in comparing policies.

Contact your state insurance department or insurance counseling program for this information. A list of insurance departments and counseling programs starts on page 56.

Take your time and compare outlines of coverage. Never let anyone pressure or scare you into making a quick decision. Don’t buy a policy the first time you see an agent. Ask for an outline of coverage. It outlines the policy’s benefits and points out important features. Compare outlines of coverage for several policies, and make sure the outlines are similar (if not the same) when comparing premiums. In most states the agent must leave an outline of coverage when he or she first contacts you.

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