By Tony Brings
Long term care insurance is usually taken by those who are old and need help in their every day duties. Like dressing and bathing. These products can be really useful as they reduce costs and the LTC pays for the individual's needs right from the beginning. If the person pays for his or her needs, then it might become an expensive matter where as a single premium paid to the insurance company can keep it cheap and simple. The product can pay for nursing 24 hours a day and 7 days a week.
Why is it necessary anyway? Old people who want to be independent and not rely on their children for help can go for Long term insurance. It gives them satisfaction of self-sufficiency while not depleting their savings.
There are two types of long term care policies that are currently being sold: Tax Qualified and Non-Tax Qualified. The Non-Tax Qualified was formerly called Traditional Long Term Care insurance. This type has been sold for over 30 years. It often includes a condition attached. This condition requires that the patient's own doctor, or that doctor in conjunction with someone from the insurance company, can state that the patient needs care for any medical reason and the policy will pay.
The Tax Qualified long term care insurance policies do not have a any conditions. The only thing required for purchasing this type of policy is that if a person is not able to do 2 or more things for 90 days. For example, reminder help, bathing and dressing assistance ETC.
However, when buying a long term policy one needs to be aware and understand what is involved. Frauds are becoming more and more commmon. As sales agents are paid more commission, they want to give false information to sell the policy. Since you will be paying thousands of dollars it is better to be well informed so that you do not suffer in the future and quality service is given to you when needed.
Remember, if you have any doubts what the contract means and whether or not it will protect you after spending thousands in premiums and to avoid risking litigation in the future, it is far more sensible to pay for an informed opinion at the outset.
The key to having your expectations met when you submit a claim for benefits and to avoid being defrauded is to believe nothing you are told by a sales agent and to rely upon only what you read and understand in the policy. Ignore what you may read in promotional brochures. In 1994 a California appellate court declined to rule that a misleading advertising brochure was actionable and held that all that was needed to determine the relationship between the consumer and the insurance company was to read the policy.
In the absence of an informed legal opinion, deal only with an established and respected insurance brokerage firm that has been in your community for years. An insurance broker is an independent agent for many companies and normally knows what the market is offering. Such a person can explain the advantages and disadvantages of various policies on the market.
Buying a long term insurance policy requires care and proper judgement. Go for a reputed policy provider and you will be safe. Be careful not to trust everything a sales agent tells you. Avoiding fraud is the most important thing and do not compromise on it. Take your time on a decision and you will be satisfied when you need the coverage.
About the Author: Tony Brings is the editor of A1 LTC options. Get Long term care insurance information and policy comparison. Also offer local quotes to cover homecare and nursing home care. http://www.a1ltcoptions.info
Source: www.isnare.com
