...from the National Association of Insurance Commissioners (NAIC)...

Long Term Care Insurance involves many details for your consideration.   Following are ten important tips from NAIC:

Tip #1:  Consumers are wise to investigate Long Term Care coverage.   Those who do not want to rely on others to support them in the future should definitely look into Long Term Care Insurance today.  Looking now can also add the flexibility of choosing the type of Long Term Care services to be received later. 

Tip #2:  Long Term Care Insurance is not necessarily for everyone.  For example, if you are currently receiving Social Security or expect to have minimal or no retirement savings or retirement income, odds are that you will likely qualify for aid, such as Medicaid.   Remember, however, there are certain disadvantages to this type aid.  These disadvantages are discussed in Tip #7 below.

Tip #3:  It is important to research all of the individual insurance companies, mainly to see whether or not they have a history of raising rates for Long Term Care coverage.  It is also important to check with your state insurance department to learn how your state regulates rate increases. 

Tip #4:  Check with your financial adviser or accountant for guidance as to whether or not Long Term Care Insurance is appropriate for your specific financial situation.  If LTCI is for you, allow us at LTCtree to shop around for the most appropriate coverage at the best price.  We encourage you to request our quote package and then compare LTC insurance companies.

Tip #5:  Make sure you understand what a Long Term Care Insurance policy covers and, just as important, what it does not cover.  Ask lots of questions.  Also, find out whether or not the Long Term Care insurance company you are interested in is reputable and licensed to sell insurance in your state.

Tip #6:  Find out whether or not you qualify for a Long Term Care Insurance policy.  Pre-existing conditions are considered to be conditions that you have before you apply for insurance coverage, and such conditions can and may be excluded from coverage. In addition, for some policies, age 60 constitutes an automatic rate increase.  This should not be a deterent, however, if you are presently in your 60's, but you will save by purchasing your policy before your late 50's.  The fact is, the younger you are when you buy Long Term Care Insurance, the lower your premiums will be. 

Tip #7:  Do not rely on Medicare or Medicaid to cover your Long Term Care needs because Medicare usually only pays for a small percentage of nursing home costs. Medicaid pays only for institutional Long Term Care services, not home care, in most cases, and it only pays for nursing homes if you meet federal poverty guidelines.  Worse, the choice of care facilities can be very limited, perhaps even in a far away city!

Tip #8:  Keep in mind that tax breaks are available for qualified Long Term Care Insurance policy premiums.  The benefit payments received under such policies are tax-free.  To find out more about this, read What Makes Tax Qualified Long Term Care Insurance?

Tip #9:  Unless you are requesting quotes, be careful about responding to LTC marketing.  Do not divulge your personal, financial, or medical information over the phone unless you have solicited a call from a reputable company.  Information such as your social security number, your health status, your Medicare status, or your private insurance coverage should remain private.  Do not be fooled by mailings about Long Term Care Insurance that appear to be from an official government source.

Tip #10:  Be skeptical about advertising suggesting that Medicare is associated with a Long Term Care policy.  Medicare does not endorse or sell Long Term Care Insurance.

At LTCtree, we are happy to help you understand any and all of these ten tips.  Let us guide you through the process of learning more about Long Term Care Insurance.