A long-term care insurance policy is like a long-term commitment, between the policy holder and the insurance company.The policy holder has to keep paying the premiums till the benefits are used up and the insurance company has to bear the guarantee of service as long as premiums are paid.
You may not need the benefits of a long-term care policy till many years after purchasing the policy. So, it is important to choose your long-term care insurance policy and the insurance company carefully.From a company like Prudential, you get that long term commitment. It has a long history in the insurance industry with about 25 years of experience in the long term care insurance sector alone.
Basics of Long Term Care Insurance Policy
As per the general regulations of a long term care policy, when a policyholder is unable to perform at least two of the listed activities of daily living, he or she is eligible to receive the benefits of the policy. The eligibility will be determined after a medical assessment by an authorized nurse or doctor. The policy covers the expenses required to get long term care services like home health aide, stay at nursing facility, assisted living facility or adult day care center.
The premiums for a long term care insurance policy is determined by the terms chosen by the policyholder – the daily benefit amount, maximum term of the policy, lifetime maximum amount, inflation protection etc. Most policies have an elimination period or waiting period. The benefits start only after the completion of this period – it can be 30,60 or 90 days. Policies cost less when the waiting period is long.
Long Term Care Insurance from Prudential
Currently, Prudential is not taking any new applications for long term care insurance. It has been discontinued since June 2013. However, the existing members will continue to avail the benefits as per the policy terms. Prudential also has group long term care insurance which has to be taken through employers.
Long term care insurance is pricey – but it is worth it if you consider how much you have to spend on your own if you don’t have such a policy. You can arrange other options to pay for long term care costs like self-insuring or purchasing a life insurance with long term care benefits. Still, a long term care insurance policy will give you and your family members peace of mind about you getting good care and not having to part with all your savings. You can consult an authorized agent or financial planner to find out your best options regarding long term care insurance.