Shopper's Guide To Long Term Care Insurance

Never pay in cash.

Use a check or an electronic bank draft made payable to the insurance company.

Be sure to get the name, address, and telephone number of the agent and the company.

Get a local or toll-free number for both the agent and the company.

If you don’t get your policy within 60 days, contact the company
or agent.

You have a right to expect prompt delivery of your policy. When you get it, keep it somewhere you can easily find it. Tell a trusted friend or relative where it is.

Be sure you look at your policy during the free-look period.

If you decide you don’t want the policy soon after you bought it, you can cancel it and get your money back. You must tell the company you don’t want the policy within a certain number of days after you get it. How many days you have depends on the “free-look” period. In some states the insurance company must tell you about the free look period on the cover page of the policy. In most states you have 30 days to cancel, but in some you have less time.

Check with your state insurance department to find out how long the free-look period is in your state.

If you want to cancel:
• Keep the envelope the policy was mailed in. Or ask the agent for a signed delivery receipt when he or she hands you the policy.
• Send the policy to the insurance company along with a short letter asking for a refund.
• Send both the policy and the letter by certified mail. Keep the mailing receipt.
• Keep a copy of all letters.

It usually takes four to six weeks to get your refund.

Read the policy again and make sure it gives you the coverage you want.
Check the policy to see if the benefits and the premiums are what you expected. If you have any questions, call the agent or company right away. Also, reread the application you signed. It is part of the policy. If it’s not filled out correctly, contact the agent or company right away. You may want to fill out Worksheet 3 on page 49.

Think about having the premium automatically taken out of your bank account.

Automatic withdrawal may mean that you won’t lose your coverage if an illness makes you forget to pay your premium. If you decide not to renew your policy, be sure you tell the bank to stop the automatic withdrawals.

Check on the financial stability of the company you’re thinking about buying from.

Several insurer rating services analyze the financial strength of insurance companies. The ratings can show you how some analysts see the financial health of individual insurance companies. Different rating services use different rating scales. Be sure to find out how the agency labels its highest ratings and the meaning of the ratings for the companies you are considering. You can get ratings from some insurer rating services for free at most public libraries. Or you can call the services directly at the numbers listed below. (Note that calls to a “900” number will mean an extra charge on your telephone bill.) And now you can get information from these services on the Internet.

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