Any Long Term Care Insurance policy should include the following features among others:
- Guaranteed renewable: The company cannot cancel the policy unless the policyholder fails to pay the premium.
- Covers mental conditions: The policy should cover mental and nervous conditions due to any organic brain disease, including Alzheimer’s Disease.
- Exclusions: Exclusions should be minimal and should not affect the client’s intent to be protected.
- Premiums shouldn’t change: Premiums should not be influenced by any change in the client’s age or health, and the client should expect them not to change during the life of the policy. However, companies reserve the right to change rates on a statewide basis. Clients should be urged to buy from a company that does not have a track record of raising rates, but should be prepared to pay a higher premium years later if a rate increase occurs.
- No Pre-Existing Conditions: Once the company offers coverage and the client accepts it, any previous medical history, assuming it is admitted on the application, is of no consequence.
- Waiver of Premium: The company allows policyholders to stop paying premiums once they are receiving benefits. There can be waiting periods of up to 90 days before this waiver takes effect, and it may not be available when home health care is obtained.