Long Term Care Insurance 101

• Keep in mind that you have to keep paying the premiums to keep the coverage in existence. 
• Always get a receipt for a payment. 
  • Your cancelled check will do as will a deduction from a bank statement that indicates the Payee and amount. 
  • If you pay a premium in cash, get a receipt (and keep the receipts with a copy of your policy).
• To avoid losing the policy because of forgetfulness or if you become mentally impaired or incapacitated:
  • Consider paying premiums automatically so they're paid even if you're not feeling well. This can usually be set up either with your insurance company or your bank.
  • Money Magazine suggests that you designate an advocate who knows that you have a policy, what it covers and where you keep it. Also require the insurer to inform the person if you stop paying the premium. 
• If your premium increases, you have three choices. You can pay the higher premium, reduce coverage to reduce the cost or terminate the policy. If you can't afford the higher premium, explore lowering the cost by reducing the benefit amount, the period over which you receive beneits or by lengthening the period of time before the benefit starts. 

NOTE: Even with Long Term Care Insurance, there will still be costs you will have to pay - so it's wise to do what you can to save money now. Our article on How To Deal With A Financial Crunch has money saving tips.

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