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| Your Long-Term Care Insurance Resource | ||
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Long-Term Care Insurance |
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Long-term care insurance is a very important part of long-term care planning. There are many different long-term care insurance plans being offered by many different insurance carriers. The price of the long-term care plan is important but it is only one factor of many different factors to consider when purchasing coverage. The ratings of the issuing insurance company are extremely important, the length of time the issuing insurance company has been in the long-term care business is important, and the history of premium increases on in-force long-term are policies is critically important.
We work with most of the carriers that issue long-term policies. In Connecticut and New York, our financial advisors are certified to represent the Partnership for Long-Term Care. Partnership policies are certified by the respective state partnerships for long-term care and include asset protection. If you live in Connecticut, California, New York or Indiana, you should carefully consider a partnership policy before purchasing any kind of long-term care coverage.
Daily Benefits or Monthly Benefits?
You can purchase a daily benefit or a monthly benefit. Daily benefits provide you with a certain number of covered days under your policy. If you use any benefit under the policy for a particular day, that day is now considered fully used. If you use a home health care benefit under your policy for $75 for a particular day and you have a $150 per day nursing home benefit, that day is considered to be paid fully as a benefit. Once you exhaust your total number of days, you have no more coverage. If you purchase a 3-year daily benefit policy (1,095 days) and you only use home health care benefits for those 1,095 days, your total policy benefits have been exhausted. This is true because your benefits are based on days not dollars.
Under a monthly benefit plan, you are given a total month amount for your health care needs. The $150 per day plan would be considered a $4,500 monthly benefit. Using the same example as above, if a person used the home health care benefits ($75 per day) for the same 3 years, he or she would have only used $82,125 of the total benefit allowed of $162,000 ($4,500 x 36 months). This means that he or she would still have carry forward benefits of $79,875 to be used in succeeding months after the initial 36 months of coverage. The maximum benefit that could be paid for any one month would be $4,500 in this example. The policy would continue for as many months as it took to exhaust the total benefit amount available. This is true because the benefits are based on the monthly benefit amount and not the number of days. |
Long-Term Care Product Choices
Product Information
Long-Term Care Insurance Links (new browser window will open)
Connecticut Partnership for Long-Term Care Shopper's Guide to Long-Term Care Insurance
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Copyright 1991-2007 Continental Five Insurance Group, Inc. All Rights Reserved.
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