What You Should Know Before Purchasing Long Term Care Coverage
Before purchasing Long-Term Care Coverage, check the following guidelines:
- Eligibility. If you are between the ages of 18 and 84 and are able to take care of yourself, you should be able to purchase long-term care insurance, granted you are in good health. Many companies will not sell long-term care coverage to those who are under 18 and over 84.
- Duration of Benefits. Most long-term care policies limit the benefits to a dollar amount, or a number of days. They may have separate benefit limits for nursing homes, assisted living, and home health care. The policy may offer a one time maximum benefit period. Some policies offer a maximum benefit period of each period of disability.
- Renewability. Almost all long-term care policies are renewable. They can’t be canceled unless you default on paying your premiums and as long as the information you gave initially is accurate. The premiums can be increased in the case of an entire group increase. The provision for renew ability is usually found on the first page of your policy. This page will also specify the conditions under which your policy can be canceled and/or increased.
- Nonforfeiture Benefits. This enables some of the benefits to return to the policyholder if they drop their coverage. Most companies provide this option. Usually this will take place in the case of a return of premium or a shortened benefit period.
- Waiver of Premium. This provision enables you to stop paying premiums during the time in which you receive benefits.
- Disclosure. Your application must be accurate, forthcoming, and complete. The medical history you provide is extremely important because the insurance company uses this information to determine your eligibility and coverage.
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