An informative article in the New York Times talks about whether or not buying this coverage is worth the money. When talking about financial products each persons situation is different and therefore no one product or strategy fits all. The same applies to LTC insurance especially considering how varied and complex this coverage can be.
“Insurance companies have been in and out of these policies,” she said. “At one time there were 150 companies offering them; now there are very few. So the commitment is a little wobbly.”
In addition, such insurance is getting more expensive and covering less, and many state regulations governing policies and premiums are inconsistent. Policyholders can face big premium increases, especially for policies that were underpriced as insurers tried to gain market share in recent years.
In addition, such insurance is getting more expensive and covering less, and many state regulations governing policies and premiums are inconsistent. Policyholders can face big premium increases, especially for policies that were underpriced as insurers tried to gain market share in recent years.
Some other things to consider when shopping for LTC:
Some states offer tax incentives for buying long-term-care insurance. And don’t forget to check with your employer’s benefits department, where you might find more favorable group rates.
The bottom line is to consult with a licensed trusted professional that has your best interests at heart. If an agent is pushy or aggressive about selling you a policy then find another agent. A good question to ask an agent would be “Who should not purchase LTC insurance?” If the agent can’t answer that question then they might be trying to “sell” you a policy versus making sure if you are a right fit for the coverage.
Comment Preview