8 mistakes to avoid while making the pick for long-term care insurance
Should I buy a long-term care insurance? Is the question with which maximum people struggle with before coming up with any decision. According to research reports, it was studied that 70% of people over the age of 65 would eventually require long-term care be it at home or living facility. On the other side, the price of long-term care insurance keeps increasing with age of a person. While on one side lies the people who can afford a desired long-term care from their while there are others who rely on medical insurances to do the job for them. But unfortunately, medical insurances have its own limitations and does cover the full-time cost of long-term care. Now for these set of people who are looking for options to secure their savings, purchasing a long-termcare insurance can be a tricky affair.
Here I shall be jotting down 8 such mistakes to avoid while making the investment on long-term care insurance
1. Waiting for the right time of purchase:
Most people consider the age of 50 as the right age to make the purchase as the premium is affordable alongside being eligible for the coverage. Yet somehow they keep delaying thereby leading to the hike in premium with each passing year. At the age of 60 people wait presuming to pay lower premiums but end up paying much more. Over the decades there a huge strife between the age and premium of the policy. The more one waits, the more they tend towards higher premiums. Also, with the waiting comes along health deterioration which can be Reasoner being non-eligible for long-term care insurance.
2. Comparing policies based only on prices:
While looking out for all the available policies under the long-term careinsurance, based on the annual premium one needs to pay. Thereby neglecting what does the paid premium cover. A person should always look for policies which are stable and with resources to be around when the coverage is needed.
3. Overlooking shared policies:
Very few people infact couples have understood the advantage of opting for the policy which offers shared benefits. For a couple isn’t a single policy with shared benefits better than two separate policies and its premiums which follow. Not only is the shared long-term care insurance cheaper but also can avail discounts when the purchase is bundled.
4. Underestimating inflation rate:
While making the purchase for the policy, often people make the mistake of overlooking the damage of inflation. Say a person has purchased the long-term care insurance at the age of 50 and would not require it until the age of 80, inflation would definitely leave the person with no benefits. Hence an inflation protection of 3-5% is the key to look out for while making the choice between policies.
5. Assumptions of non requirement of long-term care:
The most important mistake one does is delaying or in a matter of fact avoiding the purchase as they preassume that latter part of their life they would be requiring long-term care. And assuming that if they do require care, they have their family to rely on. Do you really want to put the financial as well as mental burden over your family in the near future? Is solely one's personal choice!
6. Did not read the policy document:
Often people who have bought the policies encounter claim denials or delay in receiving their benefits in near future. It is always advisable to go through the policy documents and make oneself familiar with the terms of the contract, so as to be aware of when and how to make use of the benefits.
7. Failing to compare all the available policies:
Last but not the least people often underestimate the need for comparison of the all the available policies before reaching to the final one. From hybrid to shared policies being available for long-term care insurance, it is sensible to compare and shortlist the ones which would suit your future needs before making the purchase.
Definitely,long-term care insurance is the smart move of investment towards the future while avoiding some common mistakes as above. Looking out for long-term care insurance quotes and advise, then https://www.magaltc.com/long-term-care-insurance/is your key!!