subject: Long Term Care Insurance Faqs [print this page] Can everyone qualify for long term care insurance?
No. Not all people need insurance for long term care actually. Since LTCi is quite complicated product, most insurance companies have come up with difficult standards and underwriting procedures to qualify only those who are eligible. Although the standards vary from one insurer to another, here are the common conditions that make you ineligible to apply:
You are using long term care services
You have AIDS and other sex related disease
You have Alzheimers or any other cognitive disorder
You have Multiple Sclerosis or Parkinsons disease
If you have had strokes in the past 12 to 24 months
Other health conditions not mentioned in the policy will be checked if you are still qualified for the benefits. Once the company approves your eligibility, it cannot cancel your policy for any reason unless you have stopped paying premiums and after you have received the maximum benefits. If you develop illness or any condition after qualifying for policy, you will be covered for the care needed to mitigate such condition.
Am I Protected?
The state requires insurance companies to provide certain protection for consumers. Heres how you can be protected:
The insurance company cannot cancel or renew your policy for any event other than nonpayment of premiums
A 30day free look period is given to help consumers decide whether they will continue paying for premiums or demand for full refund
You may assign a loved one or any person you trust to receive the notice of unpaid premiums for you to avoid missing payments
You are given 65 days after the date of premium payment to pay all due. Coverage should not be cancelled if you failed to pay the balance after the grace period and after the appointed third party has been informed
If the cause of non-payment is disability, you can get the coverage back within five months after paying the missed amounts
Any increase in rates or premiums must be approved by the State Department of Insurance to prevent insurers from increasing the rates deliberately. You can report any insurance companies that dont follow this regulation.
Insurance companies cannot increase the individual premiums. They can do it in group plans but not on individuals. Your premium should remain the same throughout the coverage regardless of the change in health.
Remember that there is long term care insurance tax deduction that applies on individual, self employed, and business owners policies.
What should I consider before buying a policy?
This is a good question. There are lots of things to consider before buying a policy. You should assess your needs and condition to be able to design the right policy and features. You must consider your financial capability because the price is no joke. And most of all, you should look for a good insurance company before making any decision.
by: Heather Myers
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