There are variations between the policy language and benefits between the many companies that offer Long-Term Care Insurance, however the primary features and benefit choices are comparable from company to company. Differences do exist between the primary companies. When comparing long-term care insurance, you should recognize the differences between LifeSecure and other major companies.
LifeSecure, is a wholly owned subsidiary of Blue Cross Blue Shield of Michigan, the largest BCBS organization in the United States founded in 2006. Their reputation for outstanding customer service and product quality is well-known. However, their current long-term care product series provides fewer choices with limited benefits. This product is designed to be an employee benefit at the workplace with more limited underwriting.
In November 2016 they announced that they would focus their long-term care insurance business as a product offered by an employer. They no longer offer individual policies outside of an approved employer group. In most cases this product is offered as a voluntary benefit paid for by the employee. However, like all long-term care insurance policies, the policy is guaranteed renewable for life. Meaning the policy is portable. So, if an employee were to leave their job, they can keep their policy. The policy may never be canceled unless you fail to pay the premium.
You can select one of four benefit options:
$50,000 with $1000 a month, $100,000 with $2000 a month, $200,000 with $4000 a month, or $300,000 with $6000 a month
Inflation options of 1%, 3%, or 5% compounded are available. You can elect having no inflation benefit to lower the cost of the premium (although partnership rules require inflation).
The policy does cover all areas and types of care including homecare, adult daycare facilities, assisted living, memory care, and nursing home care.
It also features a “cash alternative” which allows the covered individual to receive 30% of what is normally allowed in cash at the time of claim.
It has a 90-day elimination period. This 90-day period is waived if you require care suddenly due to an accidental injury or stroke.
LifeSecure does offer long-term care partnership policies. Find your state on the LTC NEWS MAP. You can get the current cost of long-term care services, the availability of partnership plans and tax incentives by clicking here.
Significant premium differences exist between companies for the exact same benefits. Long-Term Care Insurance premiums are calculated based on your selection of benefit levels you wish to have in place. Premium calculations are also based on your age and health at the time of application. Plus, you may qualify for discounts which might be available.
Every company has their own underwriting rules which determine insurability and rate class. An experienced Long-Term Care Insurance specialist will understand these underwriting rules when helping you select the best company and policy options.
You can find a qualified specialist who represents the major insurance companies which offer these products by clicking here.
Keep in mind, numerous state and federal regulation impact Long-Term Care Insurance. However, options and benefits do vary from company to company. Be sure to seek the assistance of a qualified Long-Term Care Specialist to compare the features, benefits, and costs of each policy.
Since your health is a primary consideration in determining your eligibility for coverage it is always best to start planning prior to retirement when health is usually better. A Long-Term Care Specialist will ask you a number of questions about your health in order to make the appropriate recommendation.
Please note: Since every company has different underwriting rules you could be eligible with one company and not another.
Because Long-Term Care Insurance is custom designed you can design the plan to fit your specific needs, concerns and budget. A specialist will help you design your plan to address your concerns. Generally, you can design almost any plan, to:
- Safeguard income and savings
- Protect the lifestyle of your spouse/partner
- Provide options for quality care
- Reduce the stress and burdens otherwise placed on family members
- Give your adult children time to be family
- Provide a legacy for loved ones
State variations may apply.