The Wall Street Journal recently posted an article about the importance of long term care insurance even with the rising premium costs. The WSJ stated that it can make the difference between living out your life the way you want and becoming a burden to your family or a ward of the state. In the article they listed a few key essentials for long term care to keep it as affordable as possible while ensuring you are covered correctly.
Three factors to know: Daily benefit, length of coverage and inflation protection.
Rate increases will happen- Look for insurers that have strong financial statements and conduct significant business in your state. This may help ensure that you rate stays the same longer.
Insurers are picky- It is best to buy coverage when you are younger so that you have fewer health issues. Medical underwriters are becoming more “conservative” and rejecting more and more applications.
Go for cash and flexibility- The insurer pays you without the need for documentation from your doctor which allows you to buy care however you would like to. Make sure your policy includes an “alternative care benefit” so that you can go to different facilities of care without question.
Make the government your partner- Add the partnership rider so that your assets are protected. If you buy $250,000 in coverage and you use it all up you can qualify for Medicaid while protecting up to $250,000 of your assets.
Take advantage of the tax breaks- Depending on which state you are living in, you may be eligible for an income-tax credit for annual premiums. If you are a business owner you may be able to deduct the entire annual premium all together.
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