Long-Term-Care Insurance Facts

Qualifying for Long-Term-Care Coverage
Age you can/and should apply
Making sure you choose a safe, experienced and reliable company
Determining a good long-term-care policy from a bad one
Finding a Quality Long-Term-Care Policy

Facts to consider before applying for long-term-care insurance

Qualifying for Long-Term-Care Coverage
To qualify, you have to be in relatively good health, both mentally and physically. If so, you select a policy, complete an application and submit it with two months' premium. Your eligibility is based on your answers to the application questions, a review of your medical records and, in some cases, a face-to-face assessment, or interview, with a nurse. The approval process usually takes four to six weeks. Note: Very rarely is a physical exam required. Plus, you'll be glad to know there's no risk to you to apply. Every policy by law comes with a 30-day money-back guarantee, or "buyer's remorse clause." If you change you mind, you can receive a complete refund by simply returning your policy during the "free look" period.

Age you can/and should apply
People age 18 to 99 can apply depending on the carrier. Though the average age of new applicants is 68, the sooner you apply, the easier and less expensive it is to qualify. Carriers differ on the age they will no longer accept applicants. For instance, there are very few that will cover someone over age 90. Also, premiums can be enormous if you choose to apply after age 70. The best time to buy is when you are somewhere between age 35 to 60, healthy and, of course, able to fit it into your budget.

Making sure you choose a safe, experienced and reliable company
Without question, the long-term financial stability of the insurance company you choose is of critical importance. That's because your coverage is only as good as the company behind it.

• Find an insurer that is rated "A Excellent" or better by A.M. Best Company, a leading analyst of the insurance industry.
• Find an insurer that is rated in the "strong" category by at least two other independent rating agencies like Standard & Poor's, Moody's, Duff & Phelps and Weiss.
• Make sure that the insurer has assets of $500 million or more.
• Make sure that the insurer has been in business for at least 50 years. This is important. The fact that it has been in business for 50 or more years means it's stable, active and profitable.
• Make sure that the insurer has at least five years' experience underwriting long-term care. Lengthy experience underwriting long-term care means the company has had opportunities to pay claims, which translates into a more accurate ability to price the coverage.
• Research and make sure that your insurer has a low percentage of high-risk assets (such as volatile stocks and high risk investments).

Determining a good long-term-care policy from a bad one
There are a lot of considerations when it comes to purchasing a long-term-care policy. However, there are some features you must insist on. For example, be sure to look for:

• A large, well-rated, experienced insurance company.
• Favorable benefit triggers. These are the requirements you must meet before your insurance company pays for your care. Look for a policy that allows your doctor to certify your eligibility and one that includes "hands-on" and "stand-by" assistance.
• A policy that pays 100% of actual expenses-up to your daily maximum-regardless of where you receive care.
• A policy that waives your premium in the event you need care.
• A policy that requires you to satisfy your deductible (which is in the form of a waiting period or elimination period) only once.
• A company that has a track record of not increasing premiums often.
• A reasonable premium.

Finding a Quality Long-Term-Care Policy
There's really only one way to find the best policy: Shop around. Take the time and energy to thoroughly compare companies, policies and premiums.

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