· What are the triggers which will allow you to claim under the policy? Not all custodial care may be eligible. Usually policies are triggered when a person is unable to perform a specified number of Activities of Daily Living (bathing, dressing, eating, etc.). Cognitive impairment is also commonly used as a trigger.
· Check the amount of coverage. There may well be both a weekly or monthly benefit limit and also an overall maximum benefit limit. These figures obviously need to be considered in conjunction with the costs of providing health care in your community.
· What types of care are covered?
· Are there restrictions as to where must services be provided?
· Is the policy is renewable for life?
· Is the policy tax-qualified? If so, any benefits received will not be deemed to be part of your taxable income, which is obviously a great advantage.
· Consider buying inflation protection. This will increase your premium, but it gives the comfort of extra protection in the event of spiraling healthcare costs
· Is the insurer an established company who is financially stable?
The National Association of Insurance Commissioners produces a free brochure entitled “A Shopper’s Guide to Long-term Care Insurance”, and this is an excellent resource for more detailed analysis of what you should look out for. Contact them at (816) 842 3600.
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