What should I be careful of when looking for long term care insurance. I'm 70 years old.
First, you want to deal with a reputable agent, who specializes in LTC insurance. I always recommend MAGA LTC (800-533-6242). You do not have to use my name, and I get nothing out of this — but the knowledge that my readers will be treated fairly. Ask for Peter or Brian.
Second, you need to deal with a strong company that will be around to pay your claims! (And that’s another reason for using a knowledgeable agent.)
Third, you need to recognize that with a “traditional” policy on which you pay a yearly premium, there is a possibility that the annual premium may rise. In fact, there’s a very good possibility that may happen, as insurers are beginning to recognize how many people stick around and actually use those policies~!
So, you might want to consider a combination life/tc policy. You put money into the policy like a single deposit — or over 5 years — into the policy. If you die without using the care, your heirs get a death benefit. But if you need care, you leverage the investment into a lot of care dollars. (Or you can “borrow” the money out if you need it in the future). Here’s a link to an article I wrote about that type of policy a few weeks ago.
Of course there are many more details to cover — how many dollars of care you are purchasing, inflation adjustments, limits of care, and waiting periods before the insurance kicks in. Again, that’s why I recommend having a knowledgeable and reputable agent.