Elder Law and special needs attorney Jim Koewler talks to Answers for Elders about long-term care insurance. When should you buy and what do you need to look for in an insurance company?
Long-term care is any of the various medical and custodial services provided to a person who is unable to perform basic activities of daily living (ADLs), or needs regular health monitoring. Extended care, whether received at home or in a facility, can get pretty expensive quickly. And, while health insurance and Medicare notoriously don’t pay for things like room and board, many people are choosing to prepare for life’s “what-ifs” by purchasing long-term care insurance.
Long-term care insurance can be a long-term game-changer for those looking to plan for the future. It’s an insurance policy that you purchase by agreeing to terms and then paying a premium. Usually, policies state that you become eligible for benefits when youโre unable to perform at least two of six ADLs, but, each lender is different.
So, how do you choose a lender that’s right for you?
1. Stability
When you purchase long-term care insurance, you’re buying a product that you want to cover you for the rest of your life. So, naturally, you’ll want a lender that is big and boring – i.e., one that you won’t see on the news making terrible choices and closing up shop on you.
2. History
Insurance is not a product you want to buy from just anyone. If the company got its start last week, then they’re probably not the greatest choice. There have been plenty of examples in history where companies have come and gone very quickly; and, when the company goes away, so does your insurance.
3. Underwriting Long-Term Care Risks on a Long-Term Care Model
Some insurance companies, especially the ones that sell you on significantly lower prices, underwrite based on a disability model. This means that they’re looking to replace income. Well, while this can be similar to what a policyholder needs, it’s often not enough. It’s likely that if long-term care is needed eventually, it will cost more than a disability model will pay out.
More Help With Long-Term Care Planning
Click here to read more helpful information on long-term care planning!
Suzanne Newman
Founder and CEO of Answers for Elders, Inc., Suzanne Newman proclaims often, โCaring for my mom was the hardest thing I ever have done, but it was also my greatest privilege.โ Following a career of over 25 years in sales, media, and marketing management, Suzanne Newman found herself on a 6-year journey caring for her mother. Her trials and tribulations as a family caregiver inspired an impassioned life mission outside of the corporate world to revolutionize the journey that so many other American families also find themselves on. In 2009, she became the founder and CEO of Answers for Elders, Inc., subsequently hosting hundreds of radio segments and podcasts, as well as authoring her first book. Suzanne and Answers for Elders, Inc. have spent 14 years, and counting, committed to helping families and seniors along their caregiving journeys by providing education, resources, and support. Each week on the Answers for Elders podcast, Suzanne is joined by vetted professional experts in over 65 categories including Health & Wellness, Life Changes, Living Options, Money, Law, and more. Suzanne lives in Edmonds, Washington with her husband, Keith, and their two doodle dogs, Whidbey and Skagit.
Connect with Suzanne
Visit AFE on the web: https://answersforelders.com/
