Understanding How Long Term Care Insurance Works

Have you heard about the importance of long term care planning, but you’re not sure how Long Term Care insurance (LTCI) works? Here we’re helping you understand why LTCI is a valuable part of retirement planning.

Get Educated

First, it’s important to educate yourself on long term care and create a long term care plan for your future. Use these valuable resources to learn more about LTC services, rates, and planning.

• Our cost of care map shows the cost for services in your state or in the state you plan to retire.
• LTCI offers tax breaks for individuals or businesses. Learn more by reviewing our LTCI tax guide.
• Can you buy LTCI from anyone? Working with an LTCI Specialist may help you get the best coverage from top carriers.
• Not sure what LTCI underwriting involves? Here’s what you can expect.
• Need help choosing a plan? Consider this when shopping for LTCI.

Applying for Coverage

When applying for coverage, we recommend working with an LTCI Specialist who can shop the market for you to find the best LTCI product at a price you can afford. Many LTCI plans offer optional features you can add to your policy. Review all your options with an LTCI Specialist to make sure you get the policy features and discounts that are right for you.

The Underwriting & Approval Process

After you apply for coverage, you must complete all underwriting requirements required by the insurance company. A copy of your medical records may be requested from your doctors and specialists, and you may be required to complete a phone health interview or face-to-face interview in your home.

After your medical records and results from health interviews are received, an underwriter will review your information and determine if you are approved for coverage. This process can often take 4-6 weeks to complete.

Keeping Your Coverage Inforce

After your application is approved and initial premiums are paid, your coverage will remain inforce as long as you continue to pay your premiums. Be sure to stay current on your premiums to avoid lapsing your policy. LTCI premiums are paid until a policyholder goes on claim.

The Claims Process

If your doctor confirms you are unable to perform two out of six activities of daily living (ADLs), you may be eligible to go on claim. Contact the insurance company with the policy number to begin the claims approval process. An elimination period typically must be satisfied before claims are paid by the carrier.

Getting Reimbursed for Long Term Care Services

Payment for long term care services can go directly to the care provider or you can pay for services and be reimbursed by the carrier. Be sure to keep your receipts and submit the appropriate claim forms. Your insurance company’s customer service can help you complete the reimbursement process.

At LTC Consumer, we help individuals across the country get educated on LTCI and choose the plan that’s right for them. Get an instant LTCI quote or speak with an LTCI Specialist to learn more about your options.