Choosing Your Policy Wisely

Planning your retirement? Insurance companies offer a range of long term care insurance policy options so that every individual will be able to receive the right coverage for a specific type of long term care (LTC).However wise it is to consider a long term care insurance (LTCI) policy for your future health care needs, you have to follow a certain process when negotiating for one. By doing so, you will definitely be able to clinch the type of LTCI policy that will be suitable for your future health care needs.According to experts on the LTC field, nobody is 100% sure of what he will need in the future but everybody can determine how much he is willing to risk for a policy. For instance, upon checking with a reputable insurance company you find out that acquiring a policy with lifetime coverage will cost you $3,000 on annual premiums. So, you back out from making the purchase when in fact you could’ve settled for a shorter benefit period. Of course, you would rationalize that it is unreasonable to buy a policy with a shorter benefit period only to seek further care afterwards once your insurance benefits have been exhausted.Since we’ve reached that part of exhausting LTCI policy’s benefits, guess now is the best time to discuss LTCI policies under the partnership program. New York, Connecticut, California, and Indiana are four states responsible for implementing the partnership program in the country. Long Term Care Insurance Policy Options In hopes of getting every citizen of the country to plan his and her future health care needs, various state government agencies and private insurance companies that market LTCI collaborated and established the partnership program. Anybody who owns an LTCI policy that complies with the guidelines of the partnership program can apply for Medicaid assistance should they need additional care after having exhausted their policy benefits. Under the law, before a person can get Medicaid coverage he should deplete his assets first up to the program’s asset limit requirement which varies in every state. Fortunately, those individuals with a partnership- qualified LTCI policy are exempted from this spend down rule as they are allowed to protect a portion of their assets, or the total amount of their assets that is equivalent to the maximum benefit amount of their insurance policy. Meaning to say, owners of an LTCI policy that qualifies under the partnership program get to enjoy both worlds – topnotch health care coverage and asset protection. Another type of LTCI policy which is actually favored by the majority is the indemnity policy. With this type of policy, you will receive the exact amount of your maximum daily or monthly benefit regardless of your total expenses on care.Since it allows you to be in full control of your cash benefits, an indemnity LTCI policy is more expensive but many people believe it’s worth investing your money into this kind of LTCI product. The most common LTCI policy is the reimbursement type. It is the opposite of indemnity insurance as it would only reimburse to you the exact amount of your LTC expenses. There is absolutely a lot to choose from but when out shopping for an insurance policy be sure to weigh your long term care insurance policy options very well to be able to get the best deal.

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