Frequently asked questions about Long Term Care Insurance

Here, we will try to address the questions that we here most often when it comes to Long Term Care and Long Term Care Insurance.

Q. What is Long Term Care?

A.  Long Term Care is broadly defined as skilled or custodial care that is required for greater than 90 days.  The overwhelming majority of Long Term Care is custodial.

Q. When should I look into Long Term Care Insurance?

A. Even amongst industry professionals there is some debate over when is the ideal time to investigate coverage.  Some believe that you are never to young to consider the consequences of Long Term Care, given the large number of people under aged 65 that require care.  The general consensus appears to be that anyone who is in their 40's,  50's or 60's and has assets to protect should at least learn the facts so that they can decide if LTCi is appropriate for them.  Even if you are beyond that age, there may still be options available.  As of this writing, it is theoretically possible to insure people up until the age of 84.  However because of the health requirements, it is difficult for people at more advanced ages to qualify.

Q.  What are the alternatives to Long Term Care Insurance?

A.  There are really only three alternatives to Long Term Care Insurance when you need care.  You can have family members or friends care for you, pay out of pocket for in home or facility care, or impoverish yourself to the point of qualifying for Medicaid (MassHealth.)

Q.  My parents or grandparents didn't have LTC Insurance, why do I need it?

A.  This is probably one of the primary reasons people do not purchase Long Term Care Insurance.  It is accepted as common practice that when you buy a car, you get automobile insurance, when you buy a home you get homeowner's insurance and if you have dependents, you get life insurance.  A generation from now, it is very likely that the same will be said about Long Term Care Insurance, if you are in your 40s or 50s and have assets to protect, you get Long Term Care Insurance.  The main point here is that this is a contemporary solution to a contemporary iteration of the issue of Long term Care.

Q.  What if I buy this insurance and never use it?

A.  That is probably the best possible outcome.  There are optional riders available on most policy that offer a return of premium in this case, but the reason to purchase this insurance is if something happens, not if it doesn't.  I'm pretty sure most people hope they will never need to use their homeowner's or any other insurance.  For the most part, insurance only pays after something bad happens, the reason to purchase it is if the consequences of that event relative to the likelihood of its occurrence are significant enough.

Q.  If I have a policy, how do I become eligible to go on claim?

A.  Once your doctor determines that you will require assistance with 2 or more activities of daily living, you immediately become eligible.  The six activities of daily living are: eating, bathing, dressing, toileting, transferring and continence.   Most policies have some type of elimination period- a waiting period you need to satisfy before the policy starts paying.  Some policies waive the elimination period for home care.

Q.  Where can I get the best price on a Long Term Care Insurance Policy?

A.  Long Term Care Insurance Policy prices are set by the carriers and approved state.  All agents who represent a given carrier have access to the same plans at the same rates from that carrier.  The insurance companies must submit their rate schedule for each product to each state for approval.  You cannot shop for the best price, only for the best advice.