11. Long-term care insurance provisions and costs

Youve decided to obtain long-term care insurance and have done your homework to learn about the features of different plans. Double check your knowledge to help you select the plan thats right for you by answering the following questions:

	Many long-term care policies focus more on benefits for probably because of cost. In either case, benefits should cover care. Your financial advisor recommends purchasing a policy that provides benefits for care because .
	Because you are cost conscious, you will buy a plan for eligibility for coverage. Your plan will pay benefits .
	You will apply your cost conscious nature to determine your daily maximum benefit, how long your benefit will continue, obtaining inflation protection, and the waiting period.
	Two policies you really like are identical except one offers a daily maximum benefit of $300 and the others daily benefit is $750. The premium for the $300 provision will cost the $750 provision. If you select the $300 provision and need to collect benefits, you will pay out-of-pocket expense than you would for the $750 provision.
	Youve decided to limit the duration of your benefit payments, should you even need them, to a 4 year plan, which will cost a lifetime plan. Besides the specific premium costs associated with the length of the benefit period, you based your decision on the fact that the average nursing home stay is the term of the policy you selected. That average is years.
	Most policies have a waiting period before benefits begin to be paid (not retroactively). The longer the waiting period, the the premium.
	The policy youre considering offers inflation protection. Since it typically adds to the basic premium, youve decided not to buy the protection.
	In addition to being able to afford the premium for a policy, you need to determine that you pay the out-of-pocket expenses not covered by insurance using your liquid assets.
	You were glad to learn that preexisting condition clauses are now by the Patient Protection and Affordable Care Act. Youll need to be sure to buy a policy with renewability clause so an insurer refuse to renew your coverage.

In conclusion: Its important to learn how to choose the right policy so youll obtain one with coverage at a cost that .