How to Avoid the 7 Most Dangerous Long Term Care Insurance Traps

Your chances of living longer have greatlyYou also want to make sure you can deduct
increased. With that blessing comes newsome or all of your benefits from your taxes.
challenges such as how you will live and if you willThis is an important detail that can save you a lot
be able to stay in your own home.of grief later.
Long term care insurance, which aids you in caringTrap #4: Not knowing exactly what your
for yourself during your old age, could be thecoverage includes
most important decision you will make for theWill your policy care for all of your needs, or just
rest of your life.some of them? Do you know which ones, or are
Because of the complications in buying long termthey hidden in the fine print?
care insurance you need to be wary of the 7For example, is it a nursing home only policy or
most deadly traps that could rob you of yourwill it cover your in-home care expenses such as
independence.daily living aids? Will you be able to stay in your
Trap #1: Not checking out the background ofown home because your policy pays people to
your insurance agenthelp you with your meals, bathing, or other
This is not car insurance or a homeowner policyneeds?
that can be switched from company to company.Trap #5: Not getting a policy that is inflation-proof
You will be making a long investment in yourThis may be your most important consideration
future and you don't want to waste money andsince inflation grows expenses. Inflation is
time.something we can count on, so we need to be
Just because you have an agent you like whoadequately prepared for it, especially as we look
handles your car insurance doesn't mean he will bedown a road that could stretch for 20 years or
able to guide you through this complicated mazemore.
of potential policies. Getting the right agent whoIt is important to know if your policy gives you
knows what he is doing and is honest is absolutelythe right to add coverage at a later date, or if
vital.your coverage increases automatically.
Only deal with those agents who have cleanTrap #6: Not being able to back out of a policy
records. The best way to research them is withWill you be able to conceal your policy within 30
your state insurance regulator. You can also checkdays of purchase?
with the American Association for Long-TermYou should be able to back out it you change
Care Insurance (aaltci.org)your mind or discover the policy is not in your
Trap #2: Not researching the insurance companybest interest. Not only should your policy give you
thoroughlya way out if you are displeased, but you also
You want to make certain the insurance companywant to receive a refund.
has a low complaint ratio, and does not have aTrap #7: Not being able to keep a policy
history of increasing the premiums on "classes" orindefinitely
"groups" of policyholders instead of individuals.Can you keep your policy as long as you pay the
Verify the financial strength of the long termpremiums, or will the company be able to drop
insurer. That's important since you will be keepingyou?
this policy for many years. You don't want to beDoes your policy also include a non-forfeiture
faced with fickle finances later as your insurancebenefit which will continue to pay for your care
company scrambles to raise premiums in order toeven if you stop paying the premiums? That
stay in business.feature in not totally necessary and can increase
Trap #3: Not Buying a Tax Qualified Policyyour premiums costs, but it is still important to
This is very important because you do not wantkeep in mind.
your benefits considered to be income.