Long-Term-Care Insurance Policies

Look for an insurer that is top rated by Moody's Investors Service, A.M. Best Company, or Standard & Poor's Corporation.

Find out how long the company has been in business and check the Better Business Bureau or the state's Insurance Division for complaints.

Take someone with you when you meet the agent.

Never pay cash to an agent. The payment should be made by check written to the insurance company and be sure the agent gives you a signed and dated receipt when the policy is delivered

Find premiums that do not exceed 5-6% of the covered individual's income.

Ask for an “Outline of Coverage” which the law requires the insurance company to provide even if you do not want to fill out an application for insurance. Use this outline to compare policies.

Understand how and when you can contact the care manager.

Look for a policy that pays for care at home, in any adult foster care home, assisted living facility, and nursing home (not just one that is Medicare certified).

Avoid policies that cover only skilled care. Look for policies that allow respite care and adult day care.

Find out when the insurance pays for home custodial care or hospice care.

Find out if previous hospitalization, a nursing home stay, or other restrictive eligibility criteria are required.

Be sure that benefits will increase with inflation (5% each year).

Make sure that benefits last at least three years if you don't buy lifetime benefits.

Find out if some coverage is provided if the policy lapses and what conditions must be met before benefits can be started.

Make sure the policy is guaranteed renewable regardless of age.

Get several proposals before making a decision.