by Guest » Mon Dec 28, 2009 06:47 am
Do we look for LTC insurance online or is it better to sit with an independent agent?
I guess there are certain things that we should keep in mind while applying for LTC and I'm not too sure of these factors. I'd really like to know about how we may rate LTC insurance carriers and obtain cheaper quotes from them.
I guess there are certain things that we should keep in mind while applying for LTC and I'm not too sure of these factors. I'd really like to know about how we may rate LTC insurance carriers and obtain cheaper quotes from them.
Posted: Tue Jan 05, 2010 08:31 am Post Subject:
I'd always check out my prospective insurer's rank as well as their history. I can't really choose a carrier who has not made efforts to settle the good claims in time. In order to check out a certain carrier, I'd call on the DOI. I'd also seek the help of Consumer Assistance.
Posted: Wed Jan 06, 2010 03:00 pm Post Subject:
Accelertated death benefit riders are not intended to replace long term care insurance. Annuities that pay additional income when someone meets the criteria for needing care in Long Term Care like scenarios sounds attactive, but we need to keep in mind that the purpose of owning LTCi is to preserve assets
A fixed annuity that annuitizes and pay double or triple the benefit because I'm in a nursing home is still annuitized, and as a result the money I had is now gone.
There are some variable annuities with GMWB riders that offer a similar hook, they'll double maybe triple the age band if I'm in a nursing home or something similar to that, and guarantee the income benefit for my lifetime. Again though, once the money is gone, it's gone. Just because I had extra money to pay for the nursing home, doesn't mean I have wealth left over--this is what LTCi seeks to accomplish in addition to giving the insured choice of facility in stead of being subject to the whims of medicaid.
If there is a worry about loosing the premium, return of premium riders are available. They won't come cheap, but if you place a high marginal benefit on knowing you can't waste your money if you never use the insurance, its a viable solution to your "problem."
To pretend that someone could cover their long term care needs with an accelerated death benefit rider on a life policy, or an annuity with higher payouts for long term care needs is both wrong and dangerous.
Posted: Thu Jan 07, 2010 06:19 am Post Subject:
I'd always check out my prospective insurer's rank as well as their history.
Check the data associated with a number of ltc insurance carriers. Try to go through their yearly sales figure as well as the consumer complaints regarding their products. If you'd know the complaints ratio for all these ltc carriers, you'd be in a position to pick the right provider for you.
Posted: Thu Jan 07, 2010 02:29 pm Post Subject:
None of the companies selling LTCi with decent ratings have any issues with complaints. Complaints are very rare for all of them.
Posted: Fri Jan 08, 2010 06:32 am Post Subject:
I'd rather ask my agent to get the carrier's current rating (A. M. best) in writing. I'd (at least) expect a rating with A-. On the other hand, people with existing health conditions may not have good options except with that of the B+ or B rated companies.
Posted: Fri Jan 08, 2010 05:57 pm Post Subject:
Having different underwriting standards does not equate with having lower ratings. If a company is too lenient on underwriting, expect big price increases in the future.
If you can't buy LTCi with a strong carrier, don't buy it at all.
Posted: Sat Jan 09, 2010 06:20 am Post Subject:
If you can't buy LTCi with a strong carrier, don't buy it at all.
What would be your advice for those who can't manage it with a strong carrier? Many out there are not being able to manage it with a good company. Lot of them are wondering as to what could be the next best alternative that would help reduce their risks (at least to an extent).
Posted: Sat Jan 09, 2010 03:28 pm Post Subject:
If one buys long term care insurance with a weak carrier, the carrier may not be around to pay their claims. You can bet that whatever company picks up the business is going to be doing it with giant price increases.
Everyone isn't insurable which is why insurance must be purchased before it is needed.
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