Posted by What is long-term care insurance?
Long Term Care Insurance, Abbreviated as LTCi, called in ChineseLong-term care insurance.Long-term care insurance,orLong term insurance.
Long-term care insurance isProvided for insured persons who need long-term care due to old age, illness or disabilityNursing service feeCompensated health insurance.This is an insurance product that mainly pays for our professional nursing, home nursing and other related service expenses as we grow older.
1. Traditional or new?
Before we buy, we need to know which of the following two types of long-term care insurance we are about to buy:
- "Traditional" Long-Term Care Insurance (LTCi)
- The "new" long-term care insurance ( Long-term careClaimadditional termsHybrid or Combo hybrid contract)
Pros and cons of both
Traditional long-term care insurance has a single functional goal, usually has a price advantage, and canEnjoy partial tax deductionOffers, as shown in the table below:
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The "new" long-term care insurance usually provides more protection, more options, and more flexibility in financial planning.
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According to statistics from the National Long-term Care Insurance Association,In 2018, 350,000 policyholders purchased products with long-term care protection.Among them, 16% of products are traditional long-term care insurance, and 84% of products are new long-term care insurance.
2. How much does it cost to buy long-term care insurance?
We are released by the American Long-term Care Insurance Association (AALTCI) for 2019 Long-term care insurance price index reportAs an example, it is provided to consumers as a starting reference for the premium price of long-term care insurance.
55-year-old single male, 3-year coverage, long-term care cost coverage of $16.4, 2019The national average premium is $2,050.
55-year-old single woman, 3-year coverage, $16.4 long-term care cost coverage, 2019The national average premium is $2,700.
The husband and wife of a 55-year-old family have a 3-year coverage period, each with a long-term care cost coverage of $16.4.The national average premium is $3,050.
3. If you are not sick, will the premium be paid in vain?
for"Traditional" long-term care insuranceSpeaking,是 的.If the whole life is safe and sound, there is neither a refund of the premium nor additional death claims.
forThe "new" long-term care insuranceFor example, we need to confirm ourDeath claim amount(Also known as:Sum assured).If we need to use long-term care, then the insurance company will carry out "long-term care" claims.If we do not use "long-term care", this policy will automatically be converted into a life insurance for "death claims", which will be paid upon our death.
4. Can my premium be refunded midway?
The vast majority of "new" long-term care insurance products,Provides an option to "refund" premiums.When we apply for long-term care insurance, we need to know in advance whether this feature is provided.
Some "new" long-term care insurances, in the absence of claims,Provide 100% full refund of premium.For long-term care insurance industry standards,Usually you can apply for a premium refund after 6 years.
Different insurance companies and different long-term care products have different terms for the refund of premiums, which need to be confirmed with the insurance broker when applying for purchase.
5. How long can the claim be settled after the diagnosis report is issued?
The insured person will come into contact with a professional term here:Elimination Period, Chinese translated as "waiting period", or "exemption period".
It refers to how many days we need to wait before the insurance company will settle the claim when we need long-term care services.
The usual options for the waiting period for long-term care insurance are:
- 0 天
- 30 天
- 60 天
- 90 天
From a price point of view,The longer the waiting period, the cheaper the premium, And from the perspective of claims, the shorter the waiting period, we can settle claims immediately.
6. Do you pay if you are not in the United States?
For the world's resident customer group, if you configure long-term care insurance in USD currency, you need to confirm the claim clauses of the product when applying:If a person does not pay overseas, how much will he pay and how do he pay?
A small number of American life insurance companies provide long-term care international claims services, but the monthly long-term care costs are limited.
For natives or foreigners who do not often live in the United States, they need to know before applying for insurance:
- Do I need to pay extra for additional clauses for international claims?
- What is the limit for claims?
- What types of long-term care expenses can be claimed?
7. Is the claim given to me in cash, or is it an actual reimbursement?
When we meet the conditions for claim settlement, the insurance company will settle the claim in the following two ways.At this time, according to the different products we buy, the way we get compensation is also different.
The first method is "cash settlement"That is, the insurance company directly pays the compensation to us in the form of "cash", and then we control the cost.
Another way is "reimbursement", "reimbursement".We first pay the medical center or long-term care facility, and the insurance company will "reimburse" our expenses.
The two methods have various advantages. Before purchasing long-term care insurance, we need to confirm the ways to settle claims for different products.
8. When is the most appropriate time to buy long-term care insurance?
In the video column of insurGuru"What is long-term care and when is the best time to buy long-term care insurance?"As pointed out in the article,The long-term care insurance purchase window period is 50 to 62 years old.
For families who have sufficient financial budget and wish to configure long-term care insurance earlier, purchase ( The industry standard for the minimum purchase age is usually 40 years old ), you can get part of the age advantage in premiums, and you can also get the advantage of "a certain cash value growth potential" provided by some new long-term care policies.
Article summary
In order to solve and satisfy the problem of "long-term care costs" that policyholders are concerned about, life insurance companies in the United States provide two types of options.In the past 20 years, from the early traditional long-term care insurance to nowAdditional terms Rider + whole lifeInnovative technical solutions have entered the market with new hybrid long-term care products, and the long-term care insurance products in the US market are constantly updated and upgraded.
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We have listed several common problems in purchasing long-term care insurance. We hope that consumers can cooperate with professional insurance brokers or financial consultants to determine which type of long-term insurance insurance and corresponding products they need according to their own situation and needs. (End of full text)
(>>>Recommended reading:What is the difference between "long-term care" claims and "chronic illness" claims?Are these two types of insurance the same?)
