Long term care costs increase at least 5% annually due to inflation. This is only one of the many important factors that you should consider when you are requesting long term care quote for a potential policy.
Having a long term care insurance (LTCI) policy is essential as this will serve as your best defense against the continuously soaring cost of care. However, you have to study each component of your policy to ensure yourself of a coverage that will best suit your health care needs. By simply basing your coverage on variables which others deem as ideal such as a high maximum benefit amount, five-year benefit period, 90-day elimination period, and a 5% annual compound inflation protection you could put your health, budget and family on the line.
What is ideal to other people may not be for you. To be able to clinch a policy that will match your long term care (LTC) requirements you have to work through proper calculation. Practically everything in an LTCI policy, after all, involves calculation such as your daily benefit amount, coverage period, elimination period, inflation protection, not to mention that discounts that you will qualify for.
You cannot simply guess the total amount of benefits that you will need in the future or else you might end up underinsured; or you could risk overspending on your policy’s annual premium. See to it that the amount of your insurance benefits will match the cost of care in your area and that it will conform to your benefit period.
Calculating Your Long Term Care Quotes
It is highly recommended to work out your LTCI policy with a seasoned insurance agent who is not only affiliated with the country’s leading LTCI carriers but also adept in computing daily or monthly insurance benefits based on the specifications of his consumers.
You only have to furnish your LTCI agent with the necessary information before he can start gathering LTCI quotes which you can study and compare later on. Your information sheet should include your present health condition, family’s health history, preferred LTC setting, pre-existing condition if you have any, and vices that you engage in such as smoking or drinking.
Having knowledge in the current cost of care in your area will also speed up your agent’s job. Although you can easily look up the median annual cost of care in your state of residence, the figures that you will dig up will not be very helpful to your coverage because the rates of LTC facilities or services vary according to county, city or town.
For example, the median annual rate of nursing homes in the state you’re at is $75,000 but where you live it’s $79,000, so naturally you have to pattern your plan to the latter lest you risk facing bigger out-of-pocket expenses.
Requesting long term care quotes is only going to be beneficial if you know what you need. Comparing quotes would be pointless to anyone who is unsure of what he is expecting for the future.