Best Long Term Care Insurance: Avoid These Mistakes

Buying the best long term care insurance is important, as the costs of nursing homes, health care facilities, assisted care facilities, and adult day care centers are increasingly rising. While long term care insurance can help with these worries, it is also important to avoid the mistakes that people often make when purchasing this insurance. Below are the three common mistakes that individuals can make and what you can do to successfully find as well as buy the best long term care insurance policy for your needs.

Buying Too Early

Be careful not to purchase a long term insurance policy earlier than necessary. Insurance agents suggest you buy long term care insurance when you are about 40 in order to attain lower rates for your policy. However, agents may be more persistent in suggesting an early investment because they receive higher commissions on the policy. Also, what the agents won't tell you is that you must be at least 85 years of age before you can be admitted into a care facility. So, if you begin investing into a policy at the age of 40, you will not be able to tap into your investment until you reach that age should you need that kind of care. As a general rule, long term care insurance should not be purchased if you are under the age of 60, unless you have a chronic disease that will put you at risk for premature long term care needs.

Not Investigating the Insurance Company

Be sure to check out the financial stability of the insurance company from which you are considering buying a long term care insurance policy. For long term care insurance, you need a company that is financially stable and can provide proof of policy payouts to its customers. Unfortunately, a large percentage of the businesses dealing in this type of coverage do not have good records with the State Insurance Bureau. If the company you use files for bankruptcy or is dissolved, for example, you most likely will not be able to receive your overall policy amount or previous payments made toward it. Overall, checking with a ratings company or through some credible references will help you determine whether or not the insurance company is worth looking into for the best long term care policy.

Not Anticipating Enough Coverage

When you are considering the purchase of long term insurance, be conscious of the cost for the care you may need in the future. In general, long term care policies pay a daily benefit for care, but many items such as drugs, supplies, and extra counseling or therapy services, are not covered by that daily benefit. So, while you cannot predict the kind of care you will need, you should have an overall idea as to what kind of care you would like to invest in. Additionally, you should be sure to incorporate rises in health costs that could occur as you age. Current estimates say that health care will rise at the rate of 5.4 percent annually. With that in mind, you should prepare yourself for those rises by buying into a larger policy or choosing one that will suit your potential needs.

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