WISER FACT SHEET - I

10 Questions to Ask Before You Buy Long-Term Care Insurance

1. Does the policy include protection against inflation?

The benefits paid by the policy should increase with the rate of inflation; otherwise, your policy may be worth very little by the time you want to use it.

2. Does the policy guarantee that premiums remain level?

If you bought your policy at age 60, the insurance company will always charge you the same rate as other 60-year old policyholders. Once you buy the policy, the company can’t raise your rates because of your age (but it can raise rates for an entire class of insured individuals). Some policies guarantee that the rate will not change for a specific period of time.

3. Does the policy cover home health care benefits and all levels of nursing home care including skilled, intermediate and custodial care?

Classic policies cover nursing home care and can have a rider to cover home health care. Integrated policies provide a pool of funds that can be used for a range of long-term care services.

4. Does it provide comprehensive benefits for both home care and nursing home care?

Make sure that the policy covers less severe impairments and provides services that help you remain in your home.
5. Is the policy renewal guaranteed?
Policies that qualify for federal tax deductions must have the renewal guaranteed, meaning that the policy cannot be canceled if you pay the premiums on time. Other policies are conditionally guaranteed and the company could cancel coverage for a group but not for you as an individual member of the group.