• Level premiums. That means the insurer can’t raise your premium as you get older or if you develop a medical condition after you buy a policy.
• Skilled nursing care (which is prescribed by your doctor and provided by skilled medical personnel) and custodial care (which can be provided by people without professional skills) in a nursing home, or at home, without any restrictions on previous care. This last point is important. You don’t want a policy that requires, for example, you to be hospitalized before they’ll cover nursing-home stays; or prior skilled nursing-home care before they’ll pay for custodial care.
• Assistance with as few as two "activities of daily living" (ADLs). These include help with bathing, dressing, eating and walking around.
• A daily benefit amount that’s lower than the daily cost of nursing-home care in your area. For instance, if the average nursing home costs $150/day, purchase a $125/day benefit and make up the $25/day difference yourself. You’ll save $275-$300/year in premiums.
• Inflation protection which automatically increases your initial benefit level annually at least 5% each year.
• A four- to six-year cumulative benefit period rather than lifetime benefits. This saves you $600-$1,000 a year.
• A 90-day or more "elimination" period (which is the waiting period between when you enter a nursing home and when your benefits begin) shaves another $300-$450 off your annual premiums.

If you have questions about these policies, don’t rely on an insurance salesperson to answer your questions. Instead, do what we did: Call the insurance company directly and ask for a copy of the actual policy and the sales literature.

Don’t rush. Comparison shop, then pick the policy that fits your needs and your pocketbook.

You've got questions and we've got answers. Check out the Dolan Guide to Long-Term Care Insurance, where we answer your top 10 questions.

Page « Previous 1 2