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. Shoppers Guide: Companies
and agents are required to give a copy of the long-term care insurance
shoppers guide developed by the California Department of Aging to each
person who applies for a long-term care insurance policy. This guide
is titled "Taking Care of Tomorrow" and covers many issues related to
long-term care, as well as long-term care insurance.
. Checklist and Counseling Information:
Agents are required to leave a number of documents with you when they
sell a long-term care insurance policy. Among the items you should get
is a copy of a "Personal Worksheet" that helps you understand some of
the issues related to purchasing long-term care insurance, and the name,
address, and local phone number of the HICAP office nearest you where
you can receive, free of charge, information and counseling about long-term
care insurance.
Can I Afford Long-Term Care Insurance?
Most people should not spend more than 7% of their
total annual income on annual premium for a long-term care insurance
policy. Estimate your discretionary income by subtracting your fixed
expenses from your annual income. Then decide how much of that discretionary
income you want to spend on long-term care insurance premiums.
Remember that after retirement, income often does not
keep pace with inflation. As you age you are more likely to have unexpected
medical expenses, such as prescription drugs or other medical costs
that may not be covered by your medical insurance. The loss of a spouse
can also result in reduced income. Select a premium you can comfortably
afford. Take into consideration that your premium may increase during
the years you own the policy. When talking to an agent about long-term
care insurance it is important for you and your agent to understand
your financial circumstances so that he/she can tailor a plan best suited
to your needs.
Should I Replace My Existing Policy with a
Newer One?
The advantage of replacing an older policy is that
newer policies may offer more desirable benefits and features and fewer
restrictions. Assisted living in an RCFE, Home Care benefits, Inflation
Protection, and no requirements for a prior hospital stay are some of
the benefits and features being offered in current long-term care products.
However, just because a policy is newer does not necessarily mean it
is better than the one you have.
One disadvantage to replacement is that the insurance
company will charge higher premiums because you are older than you were
when you bought your original policy. In addition, if you have any preexisting
conditions or are 80 years old or more, companies may refuse to issue
new coverage. If you are still insurable you might consider adding new
coverage to the benefits you already have, or buying an additional policy
to supplement your existing benefits. Even very old policies still provide
a benefit, and the premiums are often much less expensive than a premium
for a brand new policy at an older age. Before you add benefits to an
existing older policy you should check with your agent, company, or
tax advisor to see if you will lose the grand fathered tax status granted
policies purchased prior to January 1, 1997.
If you are considering replacing an older policy, first
ask your current agent or insurer if you can update your coverage. If
you replace your policy with the same company you are likely to get
a credit for some percentage of the premiums you have already paid against
the new premium. Another possibility is to keep the older policy and
add a newer one to supplement the daily benefit in the old policy, or
add some of the newer benefits not in the older policy. Adding another
policy won't cause the loss of any tax advantages you have for the older
policy. Whenever you are considering replacing a policy, consulting
a HICAP counselor is recommended.
Long Term Insurance
| Bluecross Long Term |
California Long Term Insurance
| Kaiser Long Term |
Long Term PPO plans|
Long Term Medical plans | Long
Term Dental Insurance |
Long Term Group
Insurance | Long Term Blueshield
| Long Term Health Insurance
|
Long Term Health
plans | Long Term Health net
| Long Term Pacificare | Long
Term Medical Quote |
Long Term Aetna
PPO plans | Long Term Insurance
Quote | Long Term HMO plans
|
Long Term Life
Insurance | Long Term Dental
plans
|
