Long Term Care Insurance, Guaranteed Premiums and Other Misconceptions

Most people who buy LTC insurance are not aware about future premium increases. LTC insurance premiums are not guaranteed and may increase with permission from state departments of insurance.
The obvious question is have they and will the in the future increase premiums? The answer is yes, they have and many will also increase premiums. Insurance companies can raise rates but only for everyone in the same pool of insured. The company cannot target individual policyholders for special rate increases despite the number of claims someone may make.

Other misconceptions about LTC Insurance:

� Medicare will cover all long term care costs. Not true, Medicare provides very limited options for only 100 days and only after a qualified hospital stay. Medicaid covers long term stays in nursing homes and is considered welfare.

� Medicaid will cover all long term care costs and protect my assets is also a false statement. Medicaid will only assist those who have no other financial option.

� The earlier you buy LTC insurance the cheaper it is! This is a true statement, but only because the premium is based on age and the younger you buy, the less the premium. However, LTC insurance can increase if approved by the state department of insurance.

� Veterans can use the veterans Administration for their LTC needs. The Veterans Administration does assist many veterans but the waiting period for assistance can be years and still doesn�t guarantee a bed.

� My family will care for me is also an old concept not practical in today�s society. In many households both spouses need to work to support the family and not often are their assets in place to care for a parent.

Are there options to help me decide which policy to buy? The answer is yes, numerous sources exist and many agencies will help. A solid tip is to ask for the insurance company�s financial rating. The rating service will evaluate the company as to their claims paying ability and their ability to continue into the future. Many times the lowest premium is not the best, always ask for several options form your agent and never feel rushed into a decision. Take your time and make a logical choice based on your personal situation.