| Every insurance policy is a legal contract. Once | | | | someone with whom you enjoy good rapport. |
| agreed upon by both parties, a long term care | | | | I recommend that you begin by connecting with |
| insurance company must uphold their contract to | | | | the Buyer's Advocate for free, no-obligaion |
| the letter, or risk lawsuits and regulatory | | | | comparison quotes |
| prosecution. Each policy is crafted with utmost | | | | You want someone with experience, a deep |
| care using the probabilities of actuaries, as well as | | | | knowledge of all the companies' policies that he or |
| contract lawyers' keen legaleze, and here's how | | | | she represents, and a compassionate heart. |
| to navigate the decision process. | | | | Knowledge of policies will be helpful in finding the |
| Understanding the wording of a policy and | | | | policy you most desire. Experience comes in very |
| correctly comparing policies from various | | | | handy if you have health issues. An experienced |
| companies can be daunting for most folks and | | | | broker not only knows which policy might suit |
| exhausting. You must develop a grasp of | | | | your long term care desires, but also which |
| insurance lingo, and it wouldn't hurt to know how | | | | companies' underwriters are the most lenient for |
| specific points in each contract have been | | | | your particular health problem. Of course, a |
| interpreted by courts of law, either. | | | | compassionate heart is the soul of your |
| In case you weren't aware, the LTCi sales | | | | relationship and should be a sought after and |
| brochures are not contacts. Sales brochures are | | | | respected part of the equation. |
| created to briefly explain a product and to entice | | | | 3) After you have found a broker with whom |
| you to buy it. What is printed in a brochure does | | | | you feel comfortable, then have a conversation |
| not represent the intricacies of contract law, yet | | | | about your financial and health situation as well as |
| the brochure MUST, by law, be congruent with | | | | your preferences for long term care (nursing |
| the related, legal contract. | | | | facility only, assisted living, home care, day care, |
| Even worse, no insurance company's promotional | | | | etc). Check out what each policy has to offer and |
| literature can be trusted to thoroughly detail the | | | | it's restrictions concerning things like restoration of |
| terms of the target policy/contract. Sales is sales, | | | | benefits, how many ADLs are required to trigger |
| and truth is truth. (Although, in most states, it is | | | | benefits and whether there is the need for |
| against the law to knowingly produce long term | | | | medical supervision. Also consider the various |
| care insurance marketing materials that mislead | | | | optional benefits such as inflation protection, |
| the public.) I don't believe the Madison Avenue | | | | non-forfeiture, etc. |
| style brochures and commercials which I see | | | | Look over the sales brochures that your broker |
| created to push pharmaceutical drugs. Instead, I | | | | provides for you. There may be several company |
| go online and research the contra-indications, | | | | and policy options. The sales brochures will help |
| side-effects, suitability of the drug for a particular | | | | you narrow down your decision as well as bring |
| aliment, as well as law-suits against the company | | | | any question you may have to the forefront. |
| manufacturing it. That's called "due diligence" and | | | | 4) Read your Outline of Coverage. In Arizona, the |
| we owe it to ourselves to do our due diligence | | | | law states that an outline of coverage must be |
| when it comes to matters that will affect our | | | | given to every applicant. The Outline of Coverage |
| loved ones and ourselves. | | | | must truthfully state the basics of the policy. |
| Research pertaining to your decision about long | | | | Written in lay terms, the Outline of Coverage |
| term care insurance is no less important than | | | | more intricately describes what the policy will |
| what you put in your body. So, you must read | | | | cover, bit it's not a comples as the actual |
| your policy contract thoroughly. If you have any | | | | contract. From this, you can pretty much make |
| doubts about the meaning of the wording in an | | | | up your mind about which policy you want. |
| LTCi contract, or whether that contract will | | | | HOWEVER, an Outline of Coverage is a binding |
| protect you when you are in need (as you think it | | | | contract. It does not cover every aspect of the |
| will) you'd be wise to get expert help deciphering | | | | policy. The only way to be absolutely sure about |
| the policy. | | | | the exact wording of your LTCi policy is to |
| That said, here is the order in which to do your | | | | decipher the contract itself. READ THE |
| research: | | | | CONTRACT! Again, if you are not entirely sure |
| 1) Talk with your family about your decision to | | | | about what the wording means, then get a legal |
| buy long term care insurance. Also, any friends | | | | professional to explain it to you. |
| who have a family member who has purchased | | | | 5) Depending upon your purchase time line (Do |
| LTCi in the past, and has gone "on claim", can be | | | | you want LTCi protection right now or can it wait |
| great resources. They've "been there, done that" | | | | a few days, weeks, months) you can request a |
| and have experience with the claims process. | | | | sample policy from your broker. If you want to |
| However, I would NOT recommend taking family | | | | buy sooner than later, you can fill out an |
| members' or friends advice about which policy to | | | | application. If you are approved, you will get your |
| buy. They are not qualified to help you. Sure, they | | | | actual policy to review for 30 days. |
| would be able to steer you away from a | | | | In Arizona, there are no worries if you buy an |
| particular company or policy if they have had | | | | LTCi policy first and look afterwards. By law, you |
| significant problems during claims time, but deciding | | | | have a 30 day "free look" period that you can |
| which policy would be the best considering your | | | | use to pick your policy apart with the help of a |
| financial and health situations should be between | | | | good insurance contract lawyer. And it's not a bad |
| you and a trained (and legally licensed) LTC | | | | idea to do so, if you have the money. |
| insurance broker. | | | | Before you start your buying process, call your |
| 2) I suggest that you use a trustworthy Long | | | | Department of Insurance to verify that there is a |
| Term Care insurance BROKER, not a captive | | | | "free look" period in your state. |
| agent. A captive agent only represents one | | | | Keep the envelope in which the policy was mailed |
| company. That may be good for the company, | | | | and/or insist that your agent give you a signed |
| but it certainly may not good for you. Make sure | | | | receipt or delivery when he or she hands you the |
| that your broker represents SEVERAL long term | | | | policy. |
| care insurance companies with the highest ratings. | | | | If you decide to return the policy, you must send |
| Any company considered should have a B+ rating | | | | it to the insurance company along with a letter |
| or better. | | | | requesting that the policy be canceled and your |
| How do you find an LTCi broker with integrity? | | | | premium refunded. To make sure that the long |
| Well, you can, but you do not need to go through | | | | term care insurance company received your |
| an "established" insurance firm or agency. Just | | | | letter and policy, send them both by certified mail |
| because a firm or agency is established doesn't | | | | and keep your mail receipt. |
| mean every agent within that agency will be | | | | Keep a copy of your correspondence with the |
| someone with whom you'd feel comfortable | | | | insurance company until the refund process is |
| entrusting your future. There are just as many | | | | totally competed. The refund process usually |
| "sharks" inside insurance firms as there are | | | | takes 4 to 6 weeks. |
| outside of them. Interview brokers until you find | | | | With these steps covered you'll be set. |