Purchasing Long Term Care Insurance can be a wise decision to protect your assets for you and your loved ones. Before buying Long Term Care Insurance however, it very important that you fully understand the coverage options so you purchase the right coverage for yourself. A recent Forbes article titled, “What Are The Best Coverage Options For Long-Term Care Insurance?” provides some helpful suggestions.
First, you will want to choose a benefit amount that is right for you. Most long term care insurance benefits are determined based on a monthly or daily maximum benefit amount. It is difficult to estimate how expensive your care will be. One good indicator is location – different communities can have different costs of care. You also may want to spend more so you can have luxuries such as a higher-end facility or a private room.
It is also important to consider what medical expenses will qualify for benefits. Previously, long term care policies were quite strict and only covered skilled nursing coverage (much like Medicare). Policies have improved a lot over the years but standards still vary across companies. You will want to consider whether policies cover home care, assisted living, respite care as well as nursing home care. Having a more comprehensive coverage plan can help maintain your flexibility and treatment options.
In order to qualify for benefits, the usual standard is that you must be cognitively impaired as verified by a physician or that you are unable to perform 2 out of the 6 activities of daily living (ADLs). These standards however can differ across policies and companies. Whatever policy you choose, make sure cognitive impairment is included as many people with cognitive impairment can still physically care for themselves.