One of the most difficult things about buying long term care insurance (LTCi) is that plans are not set to one single standard. This makes it hard to compare different policies and prices for multiple companies.
So before you start shopping for a nursing care policy, it is best to learn a little about the different types of long term care insurance. This can be a daunting task because there are many different policy features and benefits to consider. Beyond that, you have to think about how you want to plan for future needs. You may decide that one particular policy is right for you, or you may decide to go with some alternative way to plan for future nursing care needs.
Think about how different plans actually pay claims. Some are called expense incurred or per diem policies. Others are indemnity policies. They are a little different, and the right one will depend upon your other retirement plans and goals.
With both types of policies, you probably have a daily limit. The daily limits usually range from about fifty dollars to three hundred dollars. The policy will also have a lifetime limit, and this is the maximum amount of money that the policy will ever pay out.
An expense incurred policy pays for actual expenses, up to the daily maximum. If you end up spending less than the daily limit, the rest of the money goes back into the insurance account. This can extend the life of the policy because the lifetime maximum benefit will not get used up so quickly.
If you have an indemnity policy, you will get the dailry amount no matter how much you spend. You will have the benefit of collecting extra cash. However, the lifetime benefit will get used up faster.
An indemnity policy will probably cost more, and it can also use up the lifetime benefit faster. Some people do not think they will ever use of the maximum lifetime payout anyway, and so they choose this payout option. They see a current need for the extra money.
An expense incurred policy will not use that lifetime benefit up as quickly. It will just pay for expenses, under the daily limit.
What kind of long term care insurance should you buy? When you purchase nursing care insurance, you are trying to plan for a future that you cannot really predict. You need to consider other plan features and benefits, your own budget, and then make your best guess about the way the future will turn out. There are also some long term care insurance altenratives you may decide to consider. Some people just decide to set aside money to pay for nursing care. Others choose to buy another type of financial or insurance product with a nursing care option.
You own choice will be an individual one. I cannot give you one perfect solution that will work for all people. However, it is best to make some plans because there is a big chance that you will need long term nursing care at some point in the future. The worst plan is to have no plan at all.
So before you start shopping for a nursing care policy, it is best to learn a little about the different types of long term care insurance. This can be a daunting task because there are many different policy features and benefits to consider. Beyond that, you have to think about how you want to plan for future needs. You may decide that one particular policy is right for you, or you may decide to go with some alternative way to plan for future nursing care needs.
Think about how different plans actually pay claims. Some are called expense incurred or per diem policies. Others are indemnity policies. They are a little different, and the right one will depend upon your other retirement plans and goals.
With both types of policies, you probably have a daily limit. The daily limits usually range from about fifty dollars to three hundred dollars. The policy will also have a lifetime limit, and this is the maximum amount of money that the policy will ever pay out.
An expense incurred policy pays for actual expenses, up to the daily maximum. If you end up spending less than the daily limit, the rest of the money goes back into the insurance account. This can extend the life of the policy because the lifetime maximum benefit will not get used up so quickly.
If you have an indemnity policy, you will get the dailry amount no matter how much you spend. You will have the benefit of collecting extra cash. However, the lifetime benefit will get used up faster.
An indemnity policy will probably cost more, and it can also use up the lifetime benefit faster. Some people do not think they will ever use of the maximum lifetime payout anyway, and so they choose this payout option. They see a current need for the extra money.
An expense incurred policy will not use that lifetime benefit up as quickly. It will just pay for expenses, under the daily limit.
What kind of long term care insurance should you buy? When you purchase nursing care insurance, you are trying to plan for a future that you cannot really predict. You need to consider other plan features and benefits, your own budget, and then make your best guess about the way the future will turn out. There are also some long term care insurance altenratives you may decide to consider. Some people just decide to set aside money to pay for nursing care. Others choose to buy another type of financial or insurance product with a nursing care option.
You own choice will be an individual one. I cannot give you one perfect solution that will work for all people. However, it is best to make some plans because there is a big chance that you will need long term nursing care at some point in the future. The worst plan is to have no plan at all.