Retirement News : Seniors : Long-term care insurance

Long-term care insurance

Date Added: 19-07-2005

Long-term care insurance is relatively new. The first policies that paid for custodial care in a nursing home were developed in the late 1970s. Because companies did not know how to price these policies, they were very careful about what they would pay for and the benefit eligibility requirements were restrictive. Some companies were notorious for not paying the claims that their policyholders filed. In the late 80s and early 90s policies began to pay for some home care if you purchased an additional home care rider. The problem was that the home care services these polices would pay for were quite limited. (i.e. They would not pay for sitters, homemakers, care coordinators or independent caregivers.) Most of these riders weren't worth having and certainly were of little value to a single person who might have to manage his or her own care. By the mid 90s over one hundred companies with very little experience in long term care had entered the business with integrated policies that paid for nursing home care or home care. The policies continued to be somewhat restrictive as to what services they would pay for at home. Most still would not pay for sitters or someone to coordinate or schedule care. Many would only pay half as much for home care as they would for care in a nursing home. By this time, the impact of pricing and poor underwriting was being felt by many of these long-term care insurance companies. Forty-four companies are listed by Larsons Long-Term Care Group publication, (Research Finds, September 1999) as having sent rate increase letters to their existing policyholders. In an effort to compete, these companies had priced their policies too low and had accepted people with high-risk problems. The long-term care insurance market has grown and matured and continues to do so. Many seniors with old polices have turned them in for new policies that do what they want them to — help them stay in their own homes. Be careful! Choose a company that is A-plus rated and has at least 15 years of experience with no rate increases anywhere in the United States. If you are going to change your policy, make sure that you are getting more. You are certainly going to pay more for better coverage, plus you are older. If you want to stay home when you can no longer perform all your activities of daily living, the extra premium may be worth it. The newest "state of the art" policy will pay for independent caregivers not associated with home care agencies, sitters to stay with you during the day to prepare meals and do laundry, and a professional to coordinate and help you with the scheduling of the services that you need to stay home. Of course, if you need to be in a nursing home or an assisted care facility it will pay the same amount there. One of the newest policies offered by the company with the most long-term care insurance policyholders in the United States that covers both husband and wife with one pool of money. It is like having a joint bank account that either can draw from when the time comes and care is needed. When either spouse needs eligible care and begins receiving benefits, the premiums stop for both for as long as one of them still needs care. either spouse needs eligible nursing home or home care the premiums stop. The policy is "tax qualified" and can pay for home care from the first day you health qualify for benefits. You also have the option of using a health care professional to help you with claims paperwork, a plan of care and the monitoring of you care. For More Information: http://www.rockymounttelegram.com/biz/content/business/stories/2005/07/18/20050718rmtcaddell.html