Thursday, July 31, 2014
Why would a 60-year-old New York couple pay $3,250 yearly for long-term care insurance when virtually identical coverage costs $1,800, some 57 percent less?
According to a policy cost comparison recently conducted by the American Association for Long Term Care Insurance, it is because prices vary depending on state, marital status, and pre-existing medical conditions. The addition of new policies on a regular basis also creates challenges for insurance agents, financial advisors and policy holders.
Comparison shopping on your own is virtually impossible for consumers, experts advise. Health sweet spots exist in all three categories, but plans must be evaluated individually to ensure the policy holder saves the most money.
When deciding who will evaluate and cover you or a loved one’s long-term care, consider these questions:
How long has the insurance agent been selling long term care insurance?
"A minimum of three years is suggested, though five or more is going to be better," Jesse Slome, executive director of AALTCI, notes.
How many policies have they sold?
"A long term care insurance specialist will have helped at least 100 individuals get coverage, though many will have helped 500 plus," he adds.
Is the financial advisor or insurance agent appointed with multiple insurance companies?
"‘Appointed’ is insurance industry jargon that means they can actually sell that company's policy. At the end of the day, an agent is only going to recommend and tell you about policies they can actually sell," he shares.
Source: American Association for Long Term Care Insurance
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