Choosing a Long Term Care Plan

Generally speaking, as we age it makes sense to consider allocating a larger percentage of insurance dollars to Long Term Care insurance rather than to non-business-related Life insurance. But with so many options to choose from, it can be hard to know what type of long term care program is best. Here are some a few of the essential benefits you should look for and understand:

Affordability: Whatever long term care program you choose should not cause you financial hardship.

Eligible benefits: Long term care programs may cover nursing home care only, or a combination of nursing home care and/or home health care. An appropriate range of services and daily benefits should be available — from skilled nursing and intermediate care, to custodial care, as well as coverage for the costs of an assisted living center.

Elimination periods: This refers to a period in your policy when no benefits are payable. Whether or not you select one is purely a function of your personal preference and situation.

Activities of daily living (ADL) triggers: Any long term care plan you are researching should specify the number and type of ADL requirements that need to be evident in order to trigger benefits.

Guarantee of premiums and renewability clauses.

Inflation protections and premium wavers:
Take these into account in order to offset any increases in care costs.