Continued from page 1
There are literally hundreds of thousands of insurance agents and brokers advertising on
Internet. Most of them will provide instant on-line quotes and even applications for potential insured. I highly discourage a layperson to purchase insurance in this fashion. A little knowledge can be dangerous.
The federal government has mandated to all states through legislation, standardized senior health insurance policy guidelines, which are governed and regulated by each state insurance department.
There are plans for almost every level of health. Some are designed and priced for a less than healthy individual. Others are for a person with minimal health concerns. . The whole concept of insurance is to provide protection for "unanticipated" sickness or injury, especially catastrophic expenses, which would devastate a person's net worth. The more small expenses a person is willing or able to pay (self-insure), lower rate. I recommend this strategy when evaluating your insurance options.
Another consideration when reviewing various insurance plans is to look at company itself. How long has company been selling this type of insurance? Do they have a lot of complaints filed with local department of insurance? Are rates stable? Does it pay claims on time? Service? Most agents talk about rating. These ratings are as follows: A+, A, A-, B+, B, B-, C+, C, C-, or "not rated".
Do not be fooled by rating alone. It is good to have a high rating, but it is far better to have a company that has longevity, stability, innovation, service, and expertise. The problem is that some companies enter into a market and quickly leave without explanation. This does not give security to policyholder.
The most important consideration should be a review of profit/loss ratio for that product. This will establish stability, and longevity in market. An insurance company with a moderate profit in a particular line of business will remain in that market. On other hand, a company with losses will make changes and possibly even withdraw. This is information not normally available to Internet users.
Before entering into an insurance contract, senior person, family, and other advisors must be realistic, and a careful evaluation of entire picture must be examined. The age, health of senior, financial resources, personality and attitude of senior, and most importantly desires of senior, should all be considered.
Early planning is important, as qualification becomes increasingly more difficult as applicant's health declines. The senior health care market is complex. I will offer some words of advice to attempt to alleviate potential pitfalls. *Choose a well-informed, seasoned, and service oriented agent or broker to assist your decision making process. The professional can offer invaluable information, but do not be afraid to ask a lot of questions and even get a second opinion. *Do not wait until your parent or loved one is sick, or injured. Plan ahead and take time needed to cover all options. *Choose an experienced insurance company. A Company that has been in marketplace for a significant time and has maintained a balance of rates and benefits and sound risk selection with moderate rate increases over time is your best bet. *The plan should be flexible, with a broad range of options and benefit selections to insured. There should be no tricks, or complicated language for coverage. An incredibly low rate is a red flag for trouble in future. *Do not rush or be rushed by an over aggressive sales person.
This policy will not be inexpensive and will need to be read and reviewed for a clear understanding of contents. This is one advantage to Internet. You are allowed to read indefinitely before you act.
A long-term care program, with or without insurance coverage, will only work if senior has input into care selection process. If there are any questions about accreditation of a facility please call "Continuing Care Accreditation Commission at 202-783-7286.
As I have mentioned in my article, best way to avoid potential problems are to plan ahead. I have found a company, that I highly reccommend as they are professional senior care specialist's and offer sound, practicle, individualized, advice for caregivers, family members, seniors, and guardians. They will advise on tax, legal, financial, health care, and other family issues, and are available nationwide.
author: William H. Pritchett Jr.
Mr. Pritchett is a certified estate planner with over 25 years of experience in long term care, medicare, and custodial care health insurance products. Mr. Pritchett was a pioneer in this market and developed the first "Home Health Care" insurance plan available in the United States in 1983. He has written many articles, is a national public speaker on the subject and sits on the board of directors for several large corporations.
