for the care you may need
Because of the complexity of quoting long term care insurance, there is nothing available where you can generate the quotes yourself online.
We can get quotes for you from a database of 31 major LTC insurers.
In addition, we use the most comprehensive LTC advisory and analysis software designed specifically for LTC insurance.
You cannot buy the same policy for less anywhere. What you pay is set entirely by the respective insurance company alone.
We are paid by the insurance company. Our help does not change what you pay. We do not charge you anything.
Some of the Major Insurers Quoted:
American Independent Network Ins. Co of New York
Genworth Life Assurance Company of New York
Allianz Life Insurance Company of North America
American Network Insurance Company
Genworth Life Insurance Company
John Hancock Life Insurance Company
The Lincoln National Life Insurance Company
Massachusetts Mutual Life Insurance Company
Medamerica Insurance Company
Metropolitan Life Insurance Company (MetLife®)
Penn Treaty Network Insurance Company
Physicians Life Insurance Company
The Prudential Life Insurance Company of America
Mutual of Omaha
What it is for
Generally, this insurance is designed to cover the cost of custodial care in a nursing home, adult care facility, at home, or a combination of these. Custodial care means taking care of daily needs of living, not medical care.
When it may be needed
The following comments on need can deal in generalities only. If you have a net worth between $200,000 and $2 - $3 million, and want to protect assets, then long term care insurance may be worth considering.
Even if you do have net worth less than whatever the Medicaid threshold is, maybe you do not want to rely on a government program. Thresholds and rules can change, and sometimes, so can net worth.
Bear in mind that if you develop a chronic medical condition that may eventually require custodial care before you buy a policy, it may be too late to be accepted for coverage. Insurance companies stay in business by selecting good risks, not bad risks.
When it may not be needed
Depending on your circumstances, if you have a net worth of $2 million or more with some liquidity, you may be able to afford to pay for long term care by yourself, without paying for any special insurance to cover it. Whether this is appropriate depends on your individual situation and other financial planning considerations.
If you have a net worth less than $200,000, you may be able to use Medicaid to pay for the cost. However, your choice of facilities and mode of care may be more limited than if you have your own coverage.
Government programs and eligibility rules may change over time, so you have to assess, and maybe guess, as to what will be available as a benefit from the government if you need this type of care at some time in the future. Depending on your age when you buy coverage, this could be twenty or more years away.
The benefit of buying a long term care policy is lost if it lapses because you later find that you cannot afford to pay for it any more. Some small benefit may still persist if there is a non-forfeiture provision. Consequently, you need to be be fairly confident that you will continue to have the funds over the years to pay the premiums. Unless a guaranteed level premium is available, the premium could be raised if the insurer needs to do so in the future.
For an insurance company to pay for long term care expenses is not as simple as paying on a life insurance claim. For a ife insurance claim, the insured life is either deceased or not. Except for mysterious disappearances, it is usually very obvious as to whether a life insurance claim should be paid.
With long term care, it's more complicated. There must be a determination as to whether the insured's condition meets the criteria in the policy for the payment of a claim. Whether or not certain activities of daily living can be performed, the functioning of cognitive abilities, and medical necessity, can be specified in the policy as criteria for claims payment. Insurers' policies differ as to which criteria, or combination, is specified.
There is another complication. Who decides whether these criteria have been met? The insurance company, your doctor, an appointed third party, or will it end up being a judge and jury? It is important to understand the factors involved so you can make the right choice and know what you are paying for.
There is home health care, skilled nursing care, intermediate care, and custodial care. Who knows which of these you may need? When comparing policies, there are some important issues to consider. For example, are all these types of care covered, and do all have the same maximum coverage period? Is there a requirement for claims payment that you be hospitalized prior to the need for long term care? Does the waiting period have to be met before each incident, or only once?
If a compounding inflation rider is available, the compounding may stop after a certain number of years or when the benefit is doubled. Policies can have different requirements for the filing of claims. They need to be complied with or no benefit will be paid.
Because the insurance companies alone set their own premium charges, there are no lower rates from those insurers than what you get with our help. For helping with the application process, we are paid a commission if coverage is issued for which an earned premium is paid. This does not cause any premium adjustment to you.
If you want to further explore long term care coverage, or get quotes, please contact us. There is no obligation.