• Long Term Care Insurance Short on Consistency

Long Term Care Insurance Short on Consistency

• Future long-term care facilities may not fit current policy criteria.
  Buying a policy at age 50 that you may not need until age 80, means that 30 years of industry innovations have gone by before you use your policy. Weiss recommends buying a policy within 10 years of the time you expect to need it.
• The cost of long-term care policies vary greatly.
  Weiss recommends you shop around, and do not buy benefits you don't need.
• The cheapest policies today may be the most expensive later.
  A big break in premium today may be followed by sharp increases later.
• Lack of consistency in long-term facility definitions.
  Precise definitions of facility types can vary from policy to policy or from state to state. Make sure your policy's definitions fit the facilities in your area.
• "Spousal discounts" may not be guaranteed.
  Many companies offer a spousal discount when the policies purchased are identical. However, identical policies for men and women make little sense because of health and life-expectancy differences.
• Insurance salespeople may overstate the benefits of "alternate care plans".
  Alternate care plans supposedly allow you to choose the care and setting appropriate to your needs at the time you need care. Make sure the policy language is clear and specific about this benefit.
• Claims of "no rate hikes" may be misleading.
  Because of the potential for "loopholes", Weiss recommends that the consumer insist on the following policy language: "We (the company) will not raise the premiums for your policy unless we raise the premiums for all policies in your state."