With the nation’s financial crisis affecting most American’s retirement accounts, well-known financial-planning expert Robert Valentine recently wrote about why Long Term Care (LTC) insurance is becoming more of an obvious choice than ever before. LTC insurance not only protects investment assets, he says, it also ensures you have a choice in the quality and type of care you receive, something we’ve been pointing out in many of our LTC posts.
Valentine encourages consumers to consider five factors before purchasing LTC coverage:
• Purchase from a solid “A” rated insurer who will likely keep premiums affordable and honor your claim.
• The policy should offer a yearly cost of living adjustment to keep up with inflation.
• Make sure the policy provides for both home and institutional care.
• To ensure tax-free status, opt for a qualified over a non-qualified policy.
• Only purchase a policy that is guaranteed for life and will not be cancelled if your health declines.
These are very good tips. We generally agree with the concept of LTC, but only from financially strong, and reputable carriers…and only when the coverage is clearly spelled out, and covers the things you specifically seek to have covered. There is nothing worse than paying premiums for years and years, all with the expectation of having insurance when you really need it, only to learn that the insurance company is relying on some loophole to deny your benefits. Believe it or not, denials like this happen every single day. We work hard to try and make sure it doesn’t happen to our clients.