Long Term Care problems Solved
Ask the expert, Dennis H. Lentin
I have heard that Long Term Care policies have changed over the past year. What changes have been made and how will they affect me?
This is a very interesting question. The answer is that there have been many
changes in the past year. I will try to list as many of them as possible in
one column.
- Home Care Only Policies: These policies have increased in prices to a
point where it no longer pays to buy one. A comprehensive plan is the same
price or less than a stand alone Home Care policy. The companies have also
modified Home Care policies so that you no longer can purchase 0 day elimination.
There is still one company that sells a Home Care policy with 0 day elimination,
which is affordable, but the parent company is in bankruptcy.
- Underwriting: The insurance companies have more experience with Long Term
Care policies and are making it harder and harder to medically qualify for
a policy.
- Purchase Age: In the past few years most the people over the age of 65
that were going to purchase Long Term Care, have done so. The majority of
new applicants are usually below age 65. The insurance industry, realizing
that the rates for younger applicants are low, has begun to increase rates
whenever they come out with new policies. Insurance companies change their
policies every two to three years. There are now only three or four companies
that have not issued new policies, but they are in the process of doing so.
By the end of 2003, all the inexpensive policies that are now available will
be gone.
- Elimination Period: Most policies were always available with a 0 day elimination
period. That is not the case anymore. Insurance companies are beginning to
issue new policies with a minimum of thirty days elimination period. That
means that the first thirty days, the most common claim period, will have
no coverage.
- Federal Government Plan: Last year the Federal Government issued their
long awaited LTC policy. When you compare the plan to private plans available
you find that you are better off buying a plan from a private insurance company.
The Government plan only allows 75% Home Care, has a minimum of 30 day elimination
period and requires that all care be supplied through agencies. No more choices
for home care. The Federal Plan is good for active government employees who
have health problems and can’t qualify for private plans. The Government
has Modified underwriting for Federal (active) employees. What this means
is that the normally uninsurable will be covered. What will this do to rates
in the future?
- Conclusion: Buy now and save money. Also, you will never be as healthy
as you are today.
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For a free buyers guide to Long Term Care Insurance, call 1-800-960-0438
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or write to:
Dennis H. Lentin
DL Financial Consultants
3852 Black Forest Circle,
Boynton Beach, Florida 33436
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