Examining different long term care insurance quotes is one way of shopping around for policies and rates. However, dealing with these documents can be confusing as insurance language can be hard for you to comprehend. The wording can be intimidating and overwhelming at first, but there is a way around this.
It is important to be prepared before you compare quotes. If you don’t know what to watch out for, you can be easily swerved into buying a policy that promises low rates but will actually cost you more in the future. More so, you can accidentally purchase a plan that’s not suited to what you actually need. Make sure that you get your money’s worth by carefully comparing each insurance quote at hand. You can effectively do so with the following tips:
1. An apples-to-apples comparison
Make sure that you’re reviewing policies that have an identical coverage. It’s impossible to have a comprehensive comparison if you’re actually looking at dissimilar plans. One way that you can verify if they’re the same is by looking into their benefits.
2. Daily benefits
Policies typically have a set benefit amount that it will pay for care services that you have incurred in a day. The higher the amount, the higher premiums you will have to pay for. Obviously, a plan with a $250 daily benefit amount will cost more than a plan that will only pay off $200 worth of daily care services. If you want a clear comparison, then make sure that you are holding quotes that have the same benefits.
Furthermore, make sure that the policy will actually pay for your desired care setting. This is very crucial especially for those who want to be cared for at home. Some policies will only pay 50% of its daily nursing home benefits for in-home care. If being cared for at home is your priority, then go for a plan that pays 100% of its cost.
3. Maximum benefit amount
The maximum amount pertains to the aggregated value of your policy. Some policies compute this by multiplying your daily benefit to the number of days that your policy will be in effect. Say, the life of your insurance plan is 5 years and your daily benefit is $250, you can arrive at your maximum benefit by this formula: $250 x 365 (number of days in a year) x 5 years.
Meanwhile, other policies don’t determine its limit by the formula above. Some simply designate a fixed dollar amount, say $300,000, that you can use for care services.
When looking at quotes, make sure that you understand how your plan determines it maximum benefits for you to make a better judgment.
4. Inflation protection
Inflation is one of the most important features that need to be included in your policy. As you go about different long term care insurance quotes, be very discerning and scrutinize your policy thoroughly. Some agents leave this feature out in order to present your with a lower premium. A 5% compounded inflation rate is your best choice in order to keep your policy at pace with care increases.
5. Insurance company
Looking into the company’s reputation is as important as analyzing insurance quotations. Before you shell out money on a policy, make sure that you are buying from a reputable provider. Don’t forget to do your homework. Check the company’s background, financial stability and capability, history in paying claims and customer satisfaction ratings.
Long term care insurance quotes are useful tools that you can use in order to secure the best policy for you. However, studying them can be tricky and can leave you confused. Avoid getting baffled by the language of this insurance policy by applying the tips above.