The American Association for Long-Term Care Insurance recently published an article on some of the ways you can save money on your long-term care insurance…and how not asking the right questions can cost you.
Some points to consider:
- Marital discounts. Some insurers give discounts to married people, on the theory that married people are more stable and healthier. Some long-term care insurers will only give the marital discount if both partners apply for coverage; some will give it if only one applies. If you only need coverage for one spouse, ask whether the discount applies.
- Overseas coverage. Many retirees move outside the U.S. to save money, but if your long-term care coverage doesn’t apply, you might end up spending more than you bargained for. Some insurers put no exclusions on payments to long-term care providers outside the U.S. Others will limit payments, such as paying a maximum of 50 percent of the daily limit or limiting benefits to one year. If a foreign retirement is in your plans, take this into consideration when buying long-term care coverage.
- Home-based care. Many policies will cover the cost of home-based care. Check the fine print, though. If yours covers only licensed home-based care, it will not cover the costs of a child leaving employment to care for you, for example. Some policies will cover unlicensed care by a family member.
When buying complex coverage such as long-term care, it pays to talk to an experienced life and health broker. A broker represents many companies, not just one, so you can shop for the best combination of features and price for you. Please contact an Insurance 411 broker for assistance if you’re considering buying long-term care insurance.