Things to be Aware of Regarding Long-Term Insurance Policies
- Since policies can vary in coverage, you should read the policy and make sure you understand what it covers before you buy the policy and make sure the benefits of the policy are expected to continue to meet your needs into the future.
- You should not buy this insurance unless you know that you can afford to pay the premiums every year. Remember that companies can increase premiums in the future.
- Medicare does not pay for most long-term care.
- Medicaid will generally pay for long-term care if you have very little income and few assets. However, your choice of long-term care services may be limited if you are receiving Medicaid. To learn more about Medicaid, contact your local or state Medicaid agency. You should not buy a long-term care policy if you are now eligible for Medicaid.
- You can obtain a copy of the “Alaska Long-Term Care Insurance Consumer Guide” from the division or access the publication available on the Division of Insurance website at www.commerce.state.ak.us/insurance/. Read this guide carefully and complete the personal worksheets in the guide. The worksheets include questions designed to help you and the insurer determine whether a long-term care policy is suitable for your needs.
- If you decide to apply for long-term care insurance, you have the right to return the policy within 30 days and get back any premium you have paid if you are dissatisfied for any reason or choose not to purchase the policy.
- Free counseling and additional information about long-term care insurance are available through the Alaska Commission on Aging in the Department of Health and Social Services.
Replacement of a Long-Term Care Policy
Note that health conditions that you presently have (preexisting conditions) may not be immediately or fully covered under a new policy. This could result in denial or delay in payment of benefits under the new policy, whereas a similar claim might have been payable under your current policy.
If you are considering replacing your current long-term care insurance policy, you should seek the advice of your present insurer, a producer, or financial advisor regarding the proposed replacement of your present policy. This is not only your right, but it is also in the best interest to make sure you understand all the relevant factors involved in replacing your long-term care insurance policy.
If you decide to terminate your current long-term care policy and replace it with a new policy, make sure that application is complete and truthful concerning your medical/history. Any material medical information that was inaccurate or omitted may affect how the insurer pays a claim under the policy or provides a refund of premium in the future.