In the fall of 2017, my article was about Long Term Care Insurance (LTC). In it I mentioned how the insurance companies are only worried about their shareholders. Nothing has changed.
There are some new hybrid policies that are both whole life and Long Term Care but like many “one fits all” solutions, it really means “less for all.” Nevertheless, I do tell my clients to purchase a Long Term Care policy; it’s a necessary evil.
Recently, I had the chance to review mine and realized how little I knew when I purchased it. When I met with my “agent” (who really works for the insurance company and receives a commission) I believed he had my best interests at heart. Now I realize how uninformed I was.
What I know now:
First, there is a 100-day elimination period before you can benefit from a claim. The first check is cut after you’ve paid for the first 30 days of covered services. So, it is 130 days of out-of-pocket expenses before you collect a penny.
Once you purchase a policy, you cannot change it — even if the insurance company changes its terms. Hence, my warning to you: Yes! Buy the policy, but review the “elective benefits” carefully.
Following are “elective benefits” you do not need:
Nursing Home Benefits: Nursing homes mean you qualify for Medicaid. Normally, if you have a long term policy, it and your Social Security will cover the monthly fee at an assisted living center.
Hospice Care Benefits: Hospice is covered by Medicare. In other words, it’s free!!
Respite Care Benefit: This is for a day or two off for the caretaker. Really, I’m buying vacation time for my caretaker?
Medical Alert System: Medical Alert Systems are covered by Medicare. However, since I chose this benefit, I get to order the “cadillac” of medical alert systems (which no one needs).
Caregiver Training Benefit: I have $1,800 to spend on training for my caregiver. The policy already covers moneys for “trained” caregivers. In other words, I paid for money I won’t use.
Yes, buy Long Term Care Insurance but look at the policy, check the benefits and, if you still need assistance, call us. Everything is negotiable.
Frances Reaves, Esq., a graduate of the University of Miami Law School, spent 10 years as a litigator/lobbyist. Today, she Is an accomplished business woman who, when her parents could no longer take care of themselves, learned the ins and outs of senior care (or the lack thereof). She founded Parent Your Parents to assist seniors and their children through the myriad pitfalls and options of “senior care” in the 21st Century. If you have any questions or comments contact Frances at hfrancesr@parentyourparents.com.
Comments are closed.