Navigating Long-Term Care Insurance: Potential Issues & Considerations

Long-term care insurance pays for a nursing home, skilled care or personal care if you become disabled. This insurance allows individuals more control over their care and protects their assets. Yet, there are some problems.

Underwriting System

• Long-term care insurance companies may take only a brief questionnaire when issuing a policy. However, if any pertinent medical information is left out, you may not be covered in time of need, according to the National Association of Insurance Commissioners.

Cost

• As of 2007, the average annual cost for long-term care insurance for a person of 40 years or younger was $881, while the average annual cost for a person of 70 was $3,026, according to the National Clearinghouse for Long Term Care Information.

The Uninsurable

• People with Parkinson's, MS, AIDS, cancer, history of strokes, Alzheimer's or other cognitive disability cannot get long-term care insurance. Candidates might also be denied if they received nursing home care or had difficulty with daily activities.

Elimination Period

• An elimination period of up to 100 days occurs before any benefits are paid to a care provider. During this time, individuals are responsible for their own expenses.