All You Need to Know About Long-Term Care Insurance

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We put together this blog post with links to resources to everything you need to know about long-term care insurance.

LongTermCare.gov on long-term care insurance:

  • What is long-term care insurance?

  • Limits on how long or how much LTC insurance providers will pay

  • Asking LTC insurance providers for their premium rate history

The Balance provides tips on:

  • Asking LTC provider if they cover cognitive impairments like Alzheimer’s and dementia

  • Finding out the list of Activities of Daily Living that qualify for each plan

  • Asking if premiums increase over time or remain constant?

  • Activities of Daily Living requirements in order for you to receive a payout of benefits

  • Asking if there is a cash value or option to cash out if coverage unused and if the policy pays dividends

  • Comparing the cost of single coverage vs. shared coverage with a spouse

  • Asking if there is inflation protection?

  • Asking how payments work on a claim? What is the claims process?

NerdWallet explains the following about long-term care insurance:

  • Why buy long-term care insurance?

  • Companies that sell long-term care insurance

  • How long-term care insurance works

  • Cost of long-term care insurance

  • Tax advantages of buying long-term care insurance

  • How to buy long-term care insurance

  • Understanding state ‘partnership’ plans

AARP on the things you should know about LTC insurance:

  • Traditional policies have fewer fans

  • You might not need insurance, but you need a plan

  • There’s a new insurance in town

  • But old-school policies are cheaper

  • Speed and smart shopping pay off

Dave Ramsey on:

  • What does long-term care insurance cover?

  • Types of long-term care insurance

  • When to buy long-term care insurance

The Motley Fool on:

  • Why long-term care insurance could be a smart idea

  • Long-term insurance isn’t cheap

  • Things that can help keep LTC costs low

U.S. News & World Report on ten alternate ways to pay for long-term care:

  • Group Long-Term Care Insurance

  • Short-Term Care Insurance

  • Life/Long-Term Care Insurance

  • Health Savings Accounts

  • Long-Term Care Annuities

  • Life Plan Communities

  • Veterans Benefits

  • Home Equity

  • Pensions or Social Security

  • Medicaid

AARP on policy shopping:

  • Ask your state insurance department for a list of companies approved to sell long-term care insurance policies in your state. Find out whether there were complaints about any of the companies that sold them.

  • Check the stability of the company and be sure it has a long history with this type of insurance. You can check this information at websites for companies including Moody's Investors Service, Standard and Poor's, and A.M. Best.

  • Compare information and costs from at least three major insurance companies. Find out how often and by how much the companies have increased their premiums.

  • Get a written copy of any policy you're considering. Review it carefully, perhaps with the assistance of your attorney or financial adviser. Write out your questions, and have a representative of the insurance company respond to your questions in writing.

  • Never let anyone pressure or scare you into making a quick decision.

  • Never pay any insurance premium in cash, and always make your check payable to the company and not an individual.

  • Nearly all states require insurance companies to give you 30 days to review your signed policy. During this time, you can return a policy for a full refund if you change your mind.

  • Still have questions or concerns? Contact the agency listed for your state at the State Health Insurance Assistance Program (SHIP).

Photo by Nashua Volquez from Pexels

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