--%>

Long-term care policy insurance

What are the tradeoffs to consider in selecting a long-term care policy insurance?

E

Expert

Verified

The points that need to be considered while choosing a long-term care policy are

Age of the individual: Individuals must consider coverage at the earliest possible age. The general requirement is between the ages of 40 and 80. When the individual is younger, the options are many and the premiums are lower.

Amount of coverage needed: This can be just to cover going to a hospital and can be extended to adult day care or home based health care and the premium will change accordingly.

Daily or monthly coverage preferred: When an individual needs higher coverage, the premium will be higher.

Benefit period: This is generally 2-6 years, but there are also lifetime benefit period and the premium will change accordingly.

Inflation protection feature: This is offered by only a few companies but is very useful

Non-Forfeiture Benefit: This helps in receiving benefit even after the premium payments are stopped.

Insurance company: the reputation, services to clients and experience help in determining the right insurance company.

Elimination period: the length of the period when the expenses had to be made by the individual himself before the insurance company takes charge. The payoff of the company will not be effective until a certain period, say 0, 60 or 90 days.

  • Average length of stay for coverage
  • Reimbursement vs indemnity: If the plan covers the whole or part of the actually incurred expenses.
  • Internal limits vs aggregate limits: Limits for reimbursement and other expenses
  • Degree of coinsurance

It is necessary to ensure that the policy covers all types of care, irrespective of the service being provided at home, nursing facility or home. The disability tradeoffs to consider includes the:

  • Elimination period
  • Benefit period
  • Amount of benefits: This must be nearly 60-70% of the gross pay when added to the individual’s other income
  • Accident and sickness coverage
  • Guaranteed renewability
  • Accessibility and adequacy factors 

   Related Questions in Biology

  • Q : What is Proactive Leadership Proactive

    Proactive Leadership: It is a function, not a position. This is a composite of all of the skills a person exerts that influence and motivates others to think, say and do the right things to attain the worthwhile vision, leading operating values, missi

  • Q : Name the environments do bacteria live

    Name the environments do bacteria live?

  • Q : Swim bladder of fishes Explain, how

    Explain, how does the swim bladder of fishes work permitting the fishes in order to control their depth under the water?

  • Q : Explain Initial Public Offering or IPO

    Initial Public Offering (IPO): It is the first sale of stock by a corporation to the public. The most general reason for a company to start an IPO is in order to elevate more capital. One of the hardest parts of an IPO is to find out the proper price

  • Q : Biological molecule which contains the

    Name the biological molecule which contains the genetic information which is transmitted hereditarily and controls the cellular functioning?

  • Q : Ribosomes in secretory cells-free

    Which are the more plentiful ribosomes in secretory cells-the free cytoplasmic ribosomes or such related with the rough endoplasmic reticulum?

  • Q : Characteristics what are the

    what are the characteristic of the perceiver

  • Q : Of which major compounds is

    Of which major compounds is mitochondrion structure produced?

  • Q : What is Direct Response Marketing

    Direct Response Marketing: It is a form of marketing that elicits an exact, measured response resulting from direct response to a marketer of a consumer. Direct response marketing assists the delivery of a call to action and outcome through direct or

  • Q : Origin of sexual reproduction-Brad

    Illustrate the quote Origin of sexual reproduction propose by Brad Harrub and Bert Thompson?