Shopper's Guide To Long Term Care Insurance

Understand the policies.

Make sure you know what the policy covers and what it doesn’t. If you have any questions, call the insurance company before you buy. If you receive any information that confuses you or is different from the information in the company literature, don’t hesitate to call or write the company to ask your questions. Don’t trust any sales presentation or literature that claims you have only one chance to buy a policy.

Some companies sell their policies through agents, and others may sell their policies through the mail, skipping agents entirely. No matter how you buy your policy, check with the company if you don’t understand how the policy works. Talk about the policy with a friend or relative. You may also want to contact your state insurance department or insurance counseling program. A list of insurance departments and counseling programs starts on page 56.

Don’t be misled by advertising.
Most celebrity endorsers are professional actors paid to advertise. They are not insurance experts. Medicare does not endorse or sell long-term care insurance policies. Be wary of any advertising that suggests Medicare is involved. Don’t trust cards you get in the mail that look like official government documents until you check with the government agency identified on the card. Insurance companies or agents trying to find buyers may have sent them. Be careful if anyone asks you questions over the telephone about Medicare or your insurance. They may sell any information you give to long term care insurance marketers, who might call you, come to your home or try to sell you insurance by mail.

Don’t buy more coverage than you need.
You don’t have to buy more than one policy to get enough coverage. One good policy is enough. Also, don’t buy more insurance than you need. For example, buying a policy with a $500 daily benefit in order to prepare for inflation is not necessary. You should choose the daily benefit that matches the cost of long-term care. For more information, reread the section “If You Already Own a Policy, Should You Switch Plans or Upgrade the Coverage You Have Now?” on page 30. Be sure to discuss any change in your coverage with your financial advisor.

Be sure you accurately complete your application.
Don’t be misled by long term care insurance marketers who say your medical history isn’t important—it is! Give correct information. If an agent fills out the application for you, don’t sign it until you have read it. Make sure that all of the medical information is accurate and complete. If it isn’t and the company used that information to decide whether to insure you, it can refuse to pay your claims and can even cancel your policy.

|1|2|3|4|5|6|7|8|9|10|11|12|13|14|15|16|17|18|19|20|21|22|23|24|25
|26|27|28|29|30|31|32|33|34|35|