Common Questions We Get on Long Term Care Insurance

 Questions:

1. Are all of the long term care insurance policies the expense incurred method?
2. Do all of the ong term care insurance policies  policies offer ‘joint benefit’ and subtract what has been used?
3. How do the different companies cover home health care?
4. What types of facilities are covered in most policies?
5. Is a portion of the $150/day for example used for home health?
6. What are the benefit triggers?  Is it mandatory that ‘bathing’ be one of them?
7. Is the elimination period service or calendar?
8. Is the elimination lifetime or each episode?
9. Do the companies/policies require another elimination period for a repeat stay in a nursing home?
10. Is the 5% compound inflation protection for the life of the policy or for a certain period?
11. Is it automatic for a 3rd party notice?
12. Is the waiver of premium automatic as soon as the 1st benefit payment is made?
13. Is there a ‘nonforfeiture benefit clause?
14. What options do I have to pay the premiums on the policy?
15. What are the companies’ rate increase histories?

Answers:
1. Yes, they are but most all have an option to receive cash payment.  That cash payment can add 50% or so to the cost.
2. All offer a shared care benefits which allows one another to use each other’s benefits in the event one spouse were to exhaust their policy but still need care.
3. All the carriers I sent cover home care at 100% of the nursing home benefit.  It will pay for all levels of care: custodial (most common), intermediate, and skilled care.
4. Assisted Living, Nursing Home, and Adult Day care. 
5. No, you can you 100% of your benefits for home care.
6. The benefit triggers are the same for all carriers:  Eating, bathing, dressing, toileting, transferring, and maintaining continence.
7. Service for all except Prudential, but a rider can be added for most to have a service day or the waiver of home care elimination period waives the deductible all together.
8. 1 time per life
9. No
10. Life of the policy.  Every policy anniversary date the inflation protection will grow your benefits 5% compound.  (other percentages offered)
11. No, but all carriers have a place in the initial paperwork to add a person if you desire.
12. Yes.
13. Yes, the is an optional rider that adds about 5-7% to the cost.
14. Annual, semi-annual, quarterly, or monthly.
15. All the carriers have been selling polices since the 70’s, 80’s and Prudential I think around 1998.  Most carriers have had just 1 rate increase between 8-15%.  These increase did not affect all policy holders.  Allianz has not had one, but recently filed to have an increase. 

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