The top 4 questions asked when purchasing a Long-Term Care Insurance policy.
How Much Coverage Do I Need?
That depends on multiple factors, including your budget, where you live, and the level of care you anticipate you’ll need.
However, it would help if you considered the following:
- The cost of Long-Term Care in your planned retirement area
- Whether you need the plan to cover the total costs of your long term care, or are you able to pay for a percentage from your retirement income and/or current assets
- If long-term illnesses such as dementia run in your family history
- How many of your family members needed Long-Term Care
- Whether your family members will be able to provide for some or all of your needs
When is the Right Time to Buy a Long-Term Care Insurance Policy?
The best time to purchase a plan is between 40-50 years old. Don’t wait until you are older to buy a policy. Doing so can cost you a lot more money in premiums. The reason for this is because companies base their premium rates on your age and level of health, with the amount increasing as your age rises and your health decreases. So buy early in life.
How long will benefits last?
A benefit period may range from two years to a lifetime. You can keep premiums down by electing coverage for three to four years—longer than the average nursing home stay—instead of a lifetime.
What is the waiting period before benefits kick in?
Most long-term care insurance policies have a waiting period between 0 and 90 days, or even longer. You will have to cover all expenses during the waiting period, so choosing a period you can afford to cover is important. A longer waiting period can mean lower premiums, but you need to be careful if you are getting home care. Look for a policy that bases the waiting period on calendar days. There may be different waiting periods for home health care and nursing home care, and some companies waive the waiting period for home health care altogether.
When buying a long-term care insurance policy, working with a broker is important to ensure you get everything you need from your plan. At Cosmo Insurance, we will work with you one-on-one to guide you through the whole process, making it stress-free.
Cosmo Insurance Agency is a full-service independent insurance agency based in Hackensack (Bergen County) and Lakewood (Ocean County), New Jersey that offers an all-encompassing range of insurance options for both individuals and businesses. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating our knowledge of the insurance guidelines for healthcare, employee benefits, life insurance, self-insurance, dental, disability, and long term care insurance, we keep our clients up-to-date with affordable plans that cover all their specific insurance needs.
