Getting Long Term Care

How To Choose Long-Term Care Insurance

Very good tips from Consumer Reports that everyone should ready before buying long term care insurance.

In preparing this report, we established criteria that could make a policy a worthwhile hedge against the costs of long-term care, if you can afford it. If you decide that you want a policy, follow these shopping guidelines.

Consider buying at around age 65. Although salespeople will try to get you to buy a policy as young as age 40, the coverage may be useless 40 years hence when you need it. New systems for care may emerge that will not be covered by a policy purchased today. For example, 15 years ago, long-term-care insurance did not pay for care in assisted-living facilities.

Between the ages of 55 and 60, buy long-term-care insurance only if you have a chronic condition like diabetes that could prove incapacitating over time. Otherwise, begin at about age 60 to assess whether you need long-term-care coverage, and, if so, buy at age 65. If you buy later than age 70, the policy will likely be too expensive or you may not pass the medical tests needed to qualify.

Look for a strong insurer. Since you are buying a policy for use 20 to 30 years in the future, hunt for a company that receives high financial-safety marks from insurance-ratings companies. We selected only the policies that were rated B+ or higher for financial strength in the Weiss Ratings database. For $45, you can order "Shopper’s Guide to Long-Term Care Insurance" from Weiss, which provides prices and safety ratings for some but not all insurers offering policies in your state. You can also check online ratings from A.M. Best, Moody’s, Standard & Poor’s, or Weiss (at www.ambest.com ; www.moodys.com ; www.standardandpoors.com ; and www.weissratings.com ). The first three services are free; Weiss charges $7.95 for each company rating online and $15 by phone. Buy only from insurers that are rated in the top two financial-strength categories by at least two of the ratings services.

Buy a flexible policy. Look for a policy requiring that a person be unable to perform no more than two activities of daily living. One should be bathing. According to the U.S. Department of Health and Human Services 1999 National Nursing Home Survey, 94 percent of nursing-home residents receive help with bathing.

A good policy will cover care not only in nursing homes but also in assisted- living facilities. (Not every facility qualifies. Some policies specify that a staff member must be on the premises 24 hours a day, a doctor must be on call, or the facility must be able to supervise medications.) A home-care benefit should include adult day care, hospice services, and respite care (temporary overnight care).