Sponsored Ad

Five Things to Watch Out for When Buying Long-Term Care Insurance and How to Apply Online

Author: | Posted in Resources No comments

Long-Term Care Insurance is not as common as primary health, automobile or life insurance. Applying for a long-term care policy can be simple and done online quickly and easily.

However, this type of coverage can protect people and their families from the potentially heavy financial burden of being forced to pay for extended care in the event of a catatrophic illness or injury that leaves an individual severely disabled and incapable of carrying out the basic functions of living. The following is a brief article detailing five important things to consider when purchasing this type of insurance, as well as how to apply for it online.

How To Apply Online

To apply online, the applicant would need to follow the procedures particular to a given insurance company or provider. However, in most cases, you will be asked to complete an application on which you will be expected to provide basic personal information. When buying long-term insurance, you might also be required to answer questions. The questions will be regarding subjects like your income. The amount of savings you have, if you qualify for Medicare or Medicaid and if you meet specific eligibility requirements as set forth by the provider you are applying to. Once you have completed the application process, the company will likely ask you to enter a username and password. These identification categories are designed to make you more easily identified by the provider. Also, help you gain quick access to information about your policy. Check the status of your application and/or claims when circumstances warrant.

Know How Much Money You Will Need To Invest In This Purchase

Long-term coverage can, in some cases, cost more than $100,000 per year. Depending upon the extent of services required. Ergo, insurance premiums are quite expensive. It is therefore recommended that those who wish to save for this type of insurance do so as early in life as possible. It is also important to note Medicare typically does not provide long-term coverage. Medicaid does, but you must have very limited financial assets to qualify for this service. In essence, a large portion of the funds needed to cover the costs of long-term insurance will be out of pocket.

Familiarize Yourself With A Policy’s Limitations

Before you apply for any policy, it is crucial you read the fine print and learn what limitations it might contain. For example, some long-term policies might have what is known as a Pre-Existing Condition Limitation. Meaning providers might not cover long-term care expenses brought about by a pre-existing condition for an extended period of time after the policy enters into effect.

Is Your Policy Tax Deductible?

Some long-term policies are subject to Federal Income Tax deductions. This is contingent upon a number of different factors. Including but not limited to how expensive the filer’s medical expenses and insurance coverage are. The filer’s income and if the filer owns or operates a business. Tax regulations can be complex and those who feel this situation applies to them should consult with a tax or financial professional to find out for sure.

What Are The Policy’s Benefit Triggers?

These type of insurance policies go into effect based on the policyholder’s inability to perform a certain number of Activities of Daily Living (ADL’s). Such actions include Moving from one location to another. Sometimes simply in and out of bed; using the restroom, bathing, continence, dressing oneself and feeding oneself. In most instances, to receive coverage. You will need significant assistance in carrying out, at the minimum, two of these functions.

Make Sure To Receive Advice From An Expert On The Subject

Many long-term insurance policies can be complex and difficult to understand. Buying such coverage from someone who lacks pertinent knowledge of the many nuances involved can prove to be a quite costly mistake. There are no universal policies or regulations governing what coverage insurers must provide. Therefore, it is critical for you to speak with a highly experienced insurance professional specializing in long-term care coverage.