by Boomer Staff

Before pitching in to help elder parents with medical needs (or yourself, for that matter) like long-term care insurance, it's important to understand what to look for before signing on the dotted line. Long-term care insurance helps cover the costs of assisted-living facilities, nursing homes and at-home care. To receive

The National Association of Elder Law

The NAELA says approximately 8-million Americans now own long-term care insurance protection, a number that has risen in recent years. Elder law attorneys nationwide, however, have seen a subsequent escalation in the number of grievances and lawsuits filed against the insurers. The majority of those complaints allegedly stem from unnecessary delays and unfair regulations related to

To avoid complications and possible surprises during your long-term care search, the NAELA offers the following tips:

1. SELECT THE RIGHT KIND OF COVERAGE. Home Health Care Coverage, for example, means you receive insurance benefits covering in-home care services provided by a licensed or registered practice nurse or therapist. Respite Care guarantees a facility will offer some help - about one to two weeks each year - to those caring for a homebound person. Adult Day Care can also help, ensuring assistance is provided during the day for recreational, therapeutic and personal care.

2. REQUIRE ADMITTANCE TO ALL LEVELS OF CARE. You should be able to use any skilled, intermediate or custodial care facility without having to start at the highest level of care. Skilled care, for example, is the highest level an individual can receive outside of hospital confinement and requires constant medical attention from licensed medical professionals under a physician's supervision. Intermediate care, which is handled by a licensed practical nurse, involves occasional nursing and rehabilitative care.

3. AVOID POLICIES WITH A PRIOR-HOSPITALIZATION REQUIREMENT. Typically, certain conditions must first be met - usually by measuring a person's ability to do one or more "activities of daily living" such as bathing, eating or dressing - before benefits are activated for nursing home care or assisted living. Preferred policies will require the insured to be unable to do two of the "activities of daily living" rather than rely on a "medically necessary" standard.

4. SELECT HIGHLY-RATED POLICIES. Financial strength is important, helping determine the insurer's long-term survival and whether they can pay future claims. Look for a company that has an "A+" rating from A.M. Best Co. and a triple "A" rating from at least one other service. Policies from the same insurer vary from state to state, so verify the information is appropriate for your particular region.

5. SECURE FRONT END UNDERWRITING TO HELP IMPROVE YOUR INSURANCE PLAN. Front end underwriting requires an attending physician's statement at the time of application and can help protect against claim denial due to underwriter mistakes. Expect the procedure to take up to a month and a half.

6. KNOW THE DIFFERENCE BETWEEN "GUARANTEED RENEWABLE" AND "NON-CANCELABLE." Non-cancelable means the policy stays in force as long as the premium is paid and the insurance company is unable to raise the premium. Guaranteed renewable means the insurance company can't drop the policy unless you skip payment, but premiums can be raised for all policyholders within a particular group.

7. OBTAIN INFLATION ADJUSTMENT. Since medical costs increase with inflation, you should consider obtaining an inflation adjustment factor. The three most common types of inflation protection are indexed, simple percentage and compounded percentage. Indexed is initially the cheapest, but might not protect you down the road. Simple Inflation Protection sets a fixed annual percentage increase. Compounded Protection is best, but typically the most expensive.

Because long-term care insurance is generally more complicated and requires more research by consumers, it's best to consult with a financial planner, Elder law attorney or insurance professional prior to any decision-making takes place.

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