Carroll Harper & Associates, Inc. 

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Things to Consider Before Buying Long Term Care Insurance Things to Consider Before Buying Long Term Care Insurance






Things to Consider

Before Buying

Long Term Care Insurance

THE COMPANY:

In the Long Term Care Insurance evaluation process one should consider the fact that benefits may not be needed for many years. Therefore, it is of utmost importance to do business with a carrier with strong financials, experience and a commitment to the Long Term Care marketplace.

Strong financials are important to pay for future claims. Experience is important to rate stability, and commitment is your assurance that the company is committed to the marketplace and your future.

Companies with positive ratings from A.M. Best, S&P, and Moody's with at least 10 years experience should be your guide.

THE AGENT:

The Long Term Care Insurance agent should be an experienced professional willing to work with you, your family and trusted advisors. The Long Term Care Insurance product is a financial planning tool that cannot be taken lightly.

Long Term Care Insurance professionals should be knowledgeable of Federal and State laws, as well as how Medicare and Medicaid apply to the LTC Insurance delivery system. Also, choose an independent agent who represents more than one carrier. The Long Term Care Insurance professional should be familiar with the LTC Insurance services available and how to access benefits at claim time.

THE PLAN:

The Long Term Care Insurance plan is offered in many variations. It is important that the plan be comprehensive, offering coverage for such services as Personal Care Attendants, Home Health Aides and Homemaker Services, Adult Foster Care, Residential Care, Assisted Living, Congregate Care and Nursing Home Care. Additionally, it should be flexible to work for you at claim time offering contractual alternatives.

Long Term Care insurance premiums are an important consideration, but should be closely evaluated to make certain your benefits are not compromised at claim time.


Blue Star BulletNever buy on the first call. A professional long term care insurance specialist will never high-pressure you or intimidate you into purchasing on the initial visit. Today's long term care insurance products are highly complex and require a great deal of patience in the decision-making process.

Blue Star BulletAvoid buying from a captive agent-in other words, an agent who only represents one carrier or who is required to present that carrier first. Typically, these agents are under high pressure to produce premiums and do not often put your best interests first. The end result is they may profit at your expense. It is best to purchase from an independent long term care insurance specialist who represents several quality carriers.

Blue Star BulletDon't buy from a financial advisor unless he or she can demonstrate to you that they work directly with a long term care insurance specialist who provides ongoing training and service for their brokers. Have them clearly demonstrate that they have met the educational levels and work directly with a long term care insurance specialist brokerage agency which will provide ongoing service at the time of claim. Remember, investment advisors are specialists in investments and not long term care insurance; for the most part, they have little knowledge about how the contractual provisions of a long term care insurance policy work and how to access benefits at claim time.

Blue Star BulletAvoid purchasing through the mail or any mail order solicitation, as the complexity of this product clearly requires one to work with a long term care insurance specialist that the consumer can see and have contact with whenever necessary, to answer their questions and assist them at claim time. There is nothing worse than purchasing a policy and 20 years down the road need claim assistance and be at the mercy of a toll-free number thousands of miles away with someone on the other end who does not understand your individual needs.

Blue Star BulletOnly consider long term care insurance if you have adequate assets to protect. In other words, an individual with less than $75,000 in liquid assets, living on a small Social Security income, will find that the insurance is probably unaffordable. A good rule of thumb is, if you're retired and age 65 and older, as an individual one should have at least $75,000 of liquid assets, including checking, savings, CDs, stocks, bonds, etc., or $200,000 or greater for a couple. There are always exceptions to rules, and one would be to consider the children paying for the policy to protect their inheritance, if financial suitability is not established. Under age 65, income is given greater consideration than liquid assets.



Whenever an agent contacts you, the following State and Federal guidelines are required to be left with you on the initial contact. This law has been in effect since Jan. 1, 2000 and is for your protection:

Blue Star BulletLess than 65 and not on Medicare, the following documents must be left with you: 1) The Outline of Coverage for the policy being presented at the time of the initial solicitation. 2) A National Association of Insurance Commissioner's Long Term Care Shopper's Guide; or the Maine Long Term Care Consumer's Guide

Blue Star Bullet65 and older: 1) The Guide to People on Medicare; 2) The National Association of Insurance Commissioner's Long Term Care Shopper's Guide; 3) The Outline of Coverage for the long term care insurance policy being proposed at the time of the initial solicitation. Failure of any producer to comply with this statute can be fined up to $10,000 and should be reported to the Maine Bureau of Insurance.


Carroll Harper & Associates, Inc.
396 Main Street
P.O. Box 1420
Southwest Harbor, ME 04679


Phone: 207-244-5133
Toll Free: 800-539-5133 
E-mail: nancy@harperltc.com





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