What Questions Should I Ask About Long Term Care Insurance? by William J. Stockdale
Long-Term Care Insurance (LTC Insurance) can be a great benefit for those in need of long-term care services, whether in a skilled nursing facility, assisted living, or at home. Unfortunately, by the time that many people consider LTC Insurance, they are either medically ineligible for coverage, or the policy is cost prohibitive.
If you are in the market for LTC Insurance, there are many things to consider. First, is there a daily maximum benefit? The daily rate of many facilities now exceeds $400. If a policy only covers $225 per day, you will need to plan on how the rest of that daily rate is getting paid. Second, is there a lifetime maximum payout? Skilled nursing care costs can exceed $100,000 per year, so understanding how long your insurance will cover your care is critical. Third, is this an Indiana Partnership policy that will protect my assets in the event that the insurance pays out in full, and I need to apply for Medicaid? Lastly, if I never use the LTC Insurance, is there a death benefit for the policy? Like anything, it is best to know what you are getting yourself into before you make a purchase.