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CHECKLIST FOR COMPARING LONG-TERM CARE POLICIES

With the numerous variations in long-term care policies, it is very difficult for consumers, life insurance agents, and financial planners to compare policies. In the final analysis, two policies may have the same cost even though one policy may clearly be superior in some areas while the other has some other provisions that are preferable. In such cases a final selection decision is difficult and highly subjective. To make an informed decision, many factors must be compared as objectively as possible.

To facilitate such comparisons several states and the Health Insurance Association of America have prepared consumer guides that are usually available for the asking. These guides contain checklists like the following:

Long-Term Care Policy Checklist

Policy A

Policy B

1. Is the policy qualified to receive favorable tax treatment?

2. What services are covered?
Skilled care
Intermediate care
Custodial care
Home health care
Adult day care
Other

3. How much does the policy pay per day for:
Skilled care?
Intermediate care?
Custodial care?
Home health care?
Adult day care?

4. How long will benefits last?
In a nursing home, for
Skilled nursing care?
Intermediate nursing care?
Custodial care?
At home?

5. Does the policy have a maximum lifetime benefit? If so, what is it?

6. Does the policy have a maximum length of coverage of each period of confinement? If so, what is it?
For nursing home care?
For home health care?

7. How long must I wait before preexisting conditions are covered?

8. How many days must I wait before benefits begin?
For nursing home care?
For home health care?

9. Are Alzheimer�s disease and other organic mental and nervous disorders covered?

10. Does this policy require:
Physician certification of need?
An assessment of activities of daily living?
A prior hospital stay for:
Nursing home care?
Home health care?
A prior nursing home stay for home health care coverage?
Other?

11. Is the policy guaranteed renewable?

12. What is the age range for enrollment?

13. Is there a waiver-of-premium provision?
For nursing home care?
For home health care?

14. How long must I be confined before premiums are waived?

15. Does the policy offer an inflation adjustment feature? If so:
What is the rate of increase?
How often is it applied?
For how long?
Is there an additional cost?

16. What does the policy cost?
Per year With inflation feature
Without inflation feature
Per month With inflation feature
Without inflation feature

17. Is there a 30-day free look?

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Long-Term Care Policy Checklist
	Policy A	Policy B
1. Is the policy qualified to receive favorable tax treatment?
2. What services are covered? Skilled care Intermediate care Custodial care Home health care Adult day care Other
3. How much does the policy pay per day for: Skilled care? Intermediate care? Custodial care? Home health care? Adult day care?
4. How long will benefits last? In a nursing home, for Skilled nursing care? Intermediate nursing care? Custodial care? At home?
5. Does the policy have a maximum lifetime benefit? If so, what is it?
6. Does the policy have a maximum length of coverage of each period of confinement? If so, what is it? For nursing home care? For home health care?


7. How long must I wait before preexisting conditions are covered?
8. How many days must I wait before benefits begin? For nursing home care? For home health care?
9. Are Alzheimer�s disease and other organic mental and nervous disorders covered?
10. Does this policy require: Physician certification of need? An assessment of activities of daily living? A prior hospital stay for: Nursing home care? Home health care? A prior nursing home stay for home health care coverage? Other?
11. Is the policy guaranteed renewable?
12. What is the age range for enrollment?
13. Is there a waiver-of-premium provision? For nursing home care? For home health care?
14. How long must I be confined before premiums are waived?

15. Does the policy offer an inflation adjustment feature? If so: What is the rate of increase? How often is it applied? For how long? Is there an additional cost?
16. What does the policy cost? Per year With inflation feature Without inflation feature Per month With inflation feature Without inflation feature
17. Is there a 30-day free look?