Frequently Asked Questions

If you are thinking about planning for the future costs and burdens of aging, we know you have questions about your options and if Long-Term Care Insurance is an affordable and appropriate solution. Here is a list of frequently asked questions and our answers. Have other questions – just ask.

Top Questions Asked

Are All Long-Term Care Insurance Policies the Same?

While policies typically share core benefits, they are not all the same. Most insurance agents and financial advisors know very little about designing a policy because the industry and the product features evolve rapidly.

Are Benefits From a Long-Term Care Insurance Policy Taxable?

Generally, no. Tax-qualified Long-Term Care Insurance benefits come to you tax-free. Insurance companies that pay long-term care insurance benefits are required by the Internal Revenue Service (IRS) to provide claimants with a 1099 LTC.

Are Long-Term Care Insurance Policies Expensive?

No, most of the time long-term care insurance is very affordable. However, it can be more expensive if you are older or have major health issues.

Are Long-Term Care Insurance Policies Portable?

If you own a Long-Term Care Insurance policy, your benefits will follow you when you move. Some companies also offer international benefits. However, if you think you will move, consider the costs of care in that location when designing the policy.

Are There Alternatives to Buying Long-Term Care Insurance?

Few people like to buy insurance but are there other options to plan for future long-term health care? There are several ways to prepare, but few may work in your situation.

Can I Get Long-Term Care Insurance with Pre-Existing Health Conditions?

Very few LTC Insurance companies have pre-existing health exclusions. You need to have reasonably good health to obtain coverage. You don't need to have perfect health.

Can the Insurance Company Cancel My Long-Term Care Policy?

The last thing you want is to own a Long-Term Care policy, start to have your health decline, and then have the company cancel the policy. Luckily, this can't happen.

Doesn't Health Insurance Pay for Long-Term Care? What About Medicare and Supplements? Medicaid?

Unless you have lived through a long-term health care event with a family member, you may not be aware that your health insurance or Medicare will not pay for extended care. Medicaid is the medical welfare program, and you must have little or no income and assets to qualify.

Financial Advisor or Long-Term Care Insurance Specialist. Who to Use to Get Accurate Information?

A better approach to planning for long-term care is working with an industry specialist. Many consumers turn to their financial advisor about long-term care planning but may not be getting the best advice or accurate information.

How Much is Long-Term Care Insurance?

The first thing most people want to know is how much does Long-Term Care Insurance cost. Good question, but it requires some effort to get an accurate answer.

How to Easily Compare Long-Term Care Insurance Options

There are more Long-Term Care Insurance options available today than ever before. How do you compare these options and insurance companies?

Is Purchasing a Small Long-Term Care Insurance Policy Worth the Investment?

Not everyone has the budget for complete LTC Insurance coverage. Is a smaller plan worth the time and effort? A smaller policy will help reduce the family burden while providing you with quality care choices.

Is There a 'Best Time' to Purchase Long-Term Care Insurance?

If you knew when your health would change or the day and time you would need long-term health care, you would then know when you should purchase a Long-Term Care policy. You don't know. Since your health can change without notice, the best time to plan is when you are younger and healthier.

Isn't Long-Term Care Insurance About Paying for Nursing Homes? I Don't Want to Go to a Nursing Home

Some people think Long-Term Care Insurance will only pay for nursing homes. Not true. Today's Long-Term Care Insurance is comprehensive and covers all types of care, including in-home care. You get to decide how you use benefits once you qualify for them.

What Are the Major Parts of a Long-Term Care Insurance Policy?

There are many parts to a long-term care insurance policy. Let’s review the items a majority of long-term care insurance plans include.

What Does Long-Term Care Insurance Cover?

Today, Long-Term Care Insurance is comprehensive, covering all types of care options, including in-home care. There are more choices today than ever before.

What if I Never Use the Benefits of My Long-Term Care Insurance Policy?

What happens if you own a Long-Term Care Insurance policy and you never need care? You and your family are probably grateful that you never had to go through what so many others go through. Can your family get the money back?

What is a Benefit Period on a LTC Insurance Policy?

Long-Term Care Insurance often has a benefit period; however, it usually is not a time limit that defines the amount of care you will be able to receive. The benefit period helps calculate the amount of money in your policy at any given time.

What is a Long-Term Care Partnership Policy?

Partnership policies look and act the same as any other long-term care policies. However, they provide additional asset protection as a reward for people who have planned in advance for the cost of long-term care.

What is Underwriting? How Does Current Health Impact Ability to Obtain Long-Term Care Insurance?

When you apply for Long-Term care Insurance the insurance company will review your health and family history to determine if the company will approve your coverage. There are health issues which can prevent you from obtaining coverage.

Why Are There Articles About LTC Insurance Premiums Going Up?

These increases are primarily on those “legacy products” that were developed and sold under old rules and old assumptions. Today’s Long-Term Care Insurance is much more rate stable.

Why Can't You Get Quotes Instead of Speaking With an Agent?

Some consumers get frustrated that they have to speak with an agent to get quotes for Long-Term Care Insurance. However, LTC insurance is medically underwritten and custom-designed. Questions must be asked.

Will Long-Term Care Insurance Premiums Go Up?

This might be one of the most asked questions by consumers. This might be due to many articles written about older “legacy products” that were sold decades ago prior to rate stabilization rules and the interest rate crash.

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