Choosing a Long-Term Health Care and Health Insurance Policy
Part 4, Chapter 14: Specialized Situations: Coverage for Long-Term Care Page 6
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Long-Term Care Insurance
Choosing a long-term care policy can be complicated. One problem is that long-term care policies are not standardized. The advantages of standardization from the consumer's point of view can be seen by examining policies like Medigap that are already standardized, or by reviewing individual and small-employer health insurance plans in those states that now require standardization of such plans. One of the most important advantages is that standardized policies of a particular type are identical, regardless of which company issues them. In addition, each type of policy is usually labeled by letter for easy identification. That makes it easier for consumers to understand the policies, to compare coverage, premiums, and service, and to more easily avoid duplication of benefits.
The disadvantage of standardization is that it may not be possible to obtain coverage for a particular benefit or service that may be of concern to an individual, unless such coverage happens to be included in one of the standardized policies. If policies were not standardized, it might be possible to find a policy that does offer such coverage, or to find a company that would consider adding such coverage to the policy.
Given the current situation, long-term care policies should be carefully evaluated on an individual basis. That requires a great deal of time and research. One area that should be particularly researched relates to the costs involved. Although long-term care policies may provide important economic benefits, they may be expensive in some cases. Thus, it's essential to consider the question of how policy premiums will affect your economic situation, both now and in the future. In addition, you need to consider the costs as compared to the possible benefits.
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