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While taking a long term care policy, you can select from a wide range of services you need to insure. Consequently, the amount of the policy depends on the type of service you want to cover, your age, term of insurance, or any other optional benefits you want to include.
However, people suffering from some health diseases or those who are already enjoying a long term care insurance, cannot avail another policy.
People generally believe that other kind of insurances will pay for their long term care costs. However, let's go into the details and find out how is Long Term Care Insurance different from other insurances.
Medicare covers expenses incurred in a nursing care facility only. Moreover, it is for a limited period. On the other hand, Medicaid too, doesn't cover long term health costs. It is just another welfare program.
People enrolled under long term care insurance are covered for a very long term, generally for a lifetime. However, the insurance offers varied plans ranging from 2, 3, 4, 5, or unlimited years.
However, there are few risks involved while going for such insurance. Hence, make sure you avoid them.
If you are buying this insurance for the first time, it is very likely that you could pay more than necessary. Hence, before you actually pay for such plans, contact more than a couple of companies and compare the prices. It is suggested that you go for a three year long term care insurance because most of the companies will extend you coverage if you don't make full use of the cover.
Like health insurance, the early you buy this insurance, the less you pay for it. However, you cannot avoid the risk of price rise, which is a common policy by companies providing long term care insurance. Hence, you may get lower interest rates but prices will definitely hike.
It is also likely that your claim could be denied. This happens when the companies couldn't hike rates. They know most of the old and sick people wouldn't fight back. Hence, when you claim, they deny reimbursing the amount and pocket the money paid by you. So, it is advisable to read the policy, including fine print, very carefully and know the list of services they cover.
The policies of long term care insurance were written in 1980's. Hence, most of the companies haven't even witnessed the "maturity of policy" period. Some companies are taken over by the other, while some have wound up. So, it becomes quite important to take a policy from a big brand.
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