Choosing a Long Term Care Insurance Carrier
There are several key considerations in choosing a Long Term Care Insurance carrier.
Financial Strength. All insurance companies have been rated by one or more financial rating agency. Rating agencies like A.M. Best among others rate the financial condition of a carrier and issue a rating. The higher the grade the better the perceived financial stability of the insurance company.
Premium or Cost. The cost of a policy will be a factor when it comes to determining whether or not you should purchase a long term care insurance policy. It is important to make sure that before you decide to purchase the least expensive policy you understand what you are buying.
Partnership for Long Term Care. A number of states have adopted a long term care insurance partnership program. This is a private/public alliance amongst state governments and insurance companies to provide a way for Medicaid to work with private long term care insurance companies. For more information click here: Partnership.
Rate History. It is important to know how often and by how much an insurance carrier has increased the premiums in the past on their LTC policies. Also insurance companies may increase the premiums based on approval from the state insurance department.
Policy Features and Benefits. The features and benefits available from a long term care insurance policy not only vary by company, but by product. A few of these features and benefits include premium discounts, shared benefits, cash benefits, and return of premium.