In a few years, baby boomers will begin swelling the ranks of older consumers needing a variety of health-related services.
Governments, including Washington state where I live, want them to buy long-term care insurance.
This insurance – designed to cover costs that Medicare and Medigap policies won’t pay for such as assisted living and nursing home care – will help cut the costs governments have to pay for older consumers who don’t have money or have run out of money.
However, four companies have stopped selling the insurance.
The latest is MetLife. Because it’s paying out significantly more in claims than it expected, the insurance company is discontinuing the sale of long-term care insurance, reports ConsumerAffairs.com.
You’ll still be able to buy long-term care insurance, but it will cost you more.
Here’s some sound advice about long-term care insurance:
Buy a policy that meets the federal guidelines-that’s called a “tax-qualified policy.”
Buy a policy that meets your state’s guidelines-that’s called a “Partnership-qualified policy” (unless you live in CA or NY).
Buy a Daily Benefit that is high enough to cover most of the cost of care in your area.
If home care is important to you, make sure the policy allows for all of the Daily Benefit to be used for care at home.
As a general rule, buy a policy that has a “Policy Limit” that is equal to the amount of your net worth that you want to protect for yourself, spouse, or heirs.
If you’re healthy, you should probably purchase a policy on your own, rather than through your employer.
Lastly, shop around. LTC insurance premiums vary a lot from one company to the next. Your age, health, and choice of benefits have a big impact in determining the premium. Get quotes from at least 9 of the top companies before choosing your policy.
Scott A. Olson
http://www.LTCShop.com