Long term care insurance is not a “one size fits all” product and there is no “standard policy” that everyone can purchase. To help you find the most fitting product for your needs, we created a list of tips on shopping for long term care insurance.
Every policy is different and no two long term care insurance policies are ever alike since each policy is tailored to the needs of the policyholder.
With that said, there are still standards needing your attention when shopping for long term care insurance.
Knowing the difference between a “want” and “need” is crucial. Only focus on what you may need in the future. What you want can be something you don’t need. You don’t want to have unnecessary costs on your policy.
Rating systems can help identify the stability of an insurance company. Be sure to check long term care insurance company ratings and reviews first before purchasing your policy. You will want a company with a strong and reliable financial record.
One of the main reasons you are shopping around is to save money on costs. Prices may significantly differ from one insurance company to the next. There is also the matter of promotions that other companies may not have. Be sure to ask for a free quote to give you a better overview of what your options are.
Nobody wants to go with a company that experiences many complaints. Multiple complaints is a red flag that could mean the company is not making their customers satisfied or it may not be able to comply with their customers’ policies. Ask current or former customers of insurers or check the internet for company ratings.
Although past increases are not completely reliable on predicting when a company may increase its rates, you may still want to consider how much the rates are increased or how frequent they make increases.
You will not want to buy a policy from unlicensed companies since you are not guaranteed to get your benefits when you need to make your claim. Be sure that the company is licensed and belongs to an association in case that the insurer goes bankrupt.
Insurance companies are obliged to give you at least 30 days to decide about your long term care policy upon receiving it. Be sure to review the policy thoroughly and not miss any details. Check the policy if it has all the benefits and features you signed up for.
If the policy does not meet your satisfaction, you can return the policy but only within 30 days. Returning the policy will get you your full refund or any payments made to the premium.
Be sure to proof read your policy before making your purchase. If necessary, ask help from a long term care insurance professional. You do not want to be missing any benefits simply because it was overlooked while the policy was being reviewed.
Do not hesitate with consulting a professional. Once you do make your purchase, be sure to keep copies of all documents you receive.