Long Term Care Insurance Industry

Today's seniors are living longer than ever, but that life extends rise, just as the needs of care. The majority of today's retirees will need some kind of special care as they age, if such assistance is delivered in their own home, an assisted living facility or a nursing home. The cost of this care is skyrocketing and many find they are unable to afford it.

Our recent series of articles has discussed the situation in detail, exposing the gap between what seniors need and what government programs actually provide. The best way by far to fill this gap is long-term care insurance.

Long Term Care Insurance (LTCI) is an insurance policy that covers your care when you can no longer perform at least two of the six daily duties. These "activities of daily living 'bathing are, dressing, eating, using restrooms, urine and Continence intestine, and enter and exit a bed or a chair.

Each LTCI policy works a little differently. Some require you to cover the first 90 days of treatment before your coverage begins, while others waive this waiting period if the requirement is for home care. Some pay so much per day, while others pay actual expenses up to a certain amount. Some of the coordinators of care arrangements for the care, if you do not see the bills or manage all the paperwork.

Anyone looking to buy LTCI is medically eligible. The underwriters look at your health differently than if you were a life insurance application. LTCI underwriters are more concerned with diseases and diseases that may prevent you from taking care of yourself, not those who cause death. Osteoporosis and diabetes are examples.

Most companies have special rates for people in excellent health, with normal levels for the rest. LTCI premiums also depends on your age. This means that the longer you wait, the higher the premium will be. There are two in ten chance of needing long-term care after age 50, two in five chance after 65 years, and seven in ten chance after 75 years.

Accordingly, it is better to buy LTCI sooner rather than later. This should be considered a purchase of pre-retirement. I highly recommend the review to the age of 50 years.

There are many factors to consider when choosing a supplier LTCI. Since this coverage is so critical that doing business with insurance companies at least AAA or AA rating by Standard and Poors. Beware of companies just entering the market. Check how many LTCI policies they have issued. If they have not issued LTCI policies for at least 10 years and not one of the major players, stay away.

Many companies (some of which are major household names) entered the company, leaving it for a few years later. Others have no experience in actuarial pricing policies correctly and end up increasing premiums. Anyway policyholders suffer.

Do not choose a company that has raised rates on existing policyholders. Do not choose a plan that requires you to purchase additional coverage every three years to protect against inflation. It is better to have protection against inflation automatically incorporated into policy.

You choose the amount of insurance to buy. Do not buy three years of coverage just because it is the length of stay nursing home average. This is ridiculous! Most people use LTCI to remain independent at home, as long as possible. They LTCI because they do not want to go into a retirement home! Get unlimited coverage if you can afford.

From my experience, the best long-term care insurance is Genworth Life Insurance Company (formerly General Electric). They are the biggest kid on the block, doing business LTCI since the 1970s. Nobody who has taken out a policy of them has already had a fare increase. It sets T.