Understanding Long Term Care Insurance
Advance Preparation
When to Buy
Because long term care insurance premiums are based on age at the time of purchase, the younger you are when you purchase a policy, the less expensive it will be. Premiums for most policies stay level each year as you age (unless they are increased for all policyholders at once). If you buy at age 50, a typical policy may cost $800 per year. However, if you wait until you are 65, the cost of the same policy could double.
Selecting a Company
More than 110 companies now offer long term care insurance products, according to the Health Insurance Association of America. Contact your state Insurance Commissioner's office for a list of companies authorized to sell long term care insurance in your state.
Investigate the financial health of any insurance company that you are considering. Look for ratings from insurance rating services,such as A.M. Best, Moody's or Standard & Poor's. The insurance company should be rated in one of the top two categories by at least two services and have no low ratings. You can find these rating services in the reference section of your library, or call A.M. Best at 908-439-2200; Moody's at 212-553-0300; or Standard & Poor's at 212-438-2000.
« back | next »
|
