How to Buy Long-Term Care Insurance
- 1). Calculate the ability to self-insure: If net worth (assets minus liabilities) is greater than $1 million, it may be more cost-effective to set aside funds in a safe investment against the possibility of needing long-term care.
- 2). Calculate the ability to spend down assets: If the estate is small or can be gifted to heirs, it is possible that a future long-term care need can be funded through Medicare or state-assisted programs.
- 3). Contact several quality nursing home facilities in your area and ask for the person or department that handles long-term care insurance relations.
- 4). Ask which insurance companies have the best track records for paying claims and for customer satisfaction, and note their names.
- 5). Find out about the typical per-day, per-person care costs for those facilities, and write them down.
- 6). Call several high-quality home care or visiting nurse agencies and ask the same questions.
- 7). Average your per-day costs for nursing home care and for in-home care.
- 8). Contact an insurance agent specializing in long-term care insurance, and have your research results with you as you determine the amount of insurance that will meet your needs.
- 9). Apply to more than one insurance company, making sure that the features you apply for are as consistent as possible for an accurate cost comparison.
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