Carroll Harper & Associates, Inc.
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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.
Never 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.
Avoid 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.
Don'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.
Avoid 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.
Only 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:
Less 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
65 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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