Follow these key points as you shop:
Check with several companies
Is it wise to contact several companies (and agents) before you buy. Be sure to compare benefits, the types of facilities you have to be in to receive coverage, the limitations of coverage, the exclusions, and, or course, the premiums. (Policies that provide identical coverage and benefits may not necessarily cost the same.)
Take your time and compare coverages
Never let anyone pressure or scare you into making a quick decision. Don't buy a policy the first time an agent comes calling. Ask the agent to give you an outline of coverage. The outline of coverage summarizes the policy's benefits and highlights important features. Compare outlines of coverage for several policies.
Understand the policies
Make sure you know what the policy covers and what it does not. If you have any questions, ask the agent or call the insurance company's home office before you buy.
If the agent gives you answers that are vague or differ from information in the company literature, or if you have doubts about the policy, tell the agent you will get back to him or her later and don't hesitate to call or write to the company and ask your questions. Beware of an agent who claims the policy can be offered only once.
Some companies may sell their policies through the mail, bypassing agents entirely If you decide to buy a policy through the mail, contact the company if you don't understand how the policy works.
Don't be misled by advertising
Don't be misled by the endorsements of celebrities. Most of these people are professional actors who are paid to advertise. They are not insurance experts.
Neither Medicare nor any other federal agency endorses or sells long-term care policies. Be skeptical of any advertising that suggests the federal government is involved with this type of insurance.
Be wary of cards received in the mail that look as if they were sent by the federal government. They may actually have been sent by insurance companies or agents trying to find potential buyers. Be skeptical if you are asked questions over the phone about Medicare or your insurance. Any information you give may be sold to insurance agents who will call you or come to your home. |
Application Do's and Don'ts
- Never pay the agent in cash
- Write a check and make it payable to the insurance company.
- Get the name, address, and telephone number of the agent and the company
- If you don't receive your policy within 60 days, contact the company or agent
- Read the policy again and make sure it provides the coverage you want
- Reread the application you signed, it becomes part of the policy. If it's not filled out correctly, notify the insurance company immediately.
- Keep the policy in a convenient place where you or anyone else readily can find it, and tell a trusted friend or relative where it is.
Pay premiums automatically
It may be a good idea to have premiums automatically deducted from your bank account and paid electronically by your bank. Should an illness delay or prevent paying your statements on time, your coverage will not lapse.
Buy from a financially stabile company
Several private companies or rating agencies conduct financial analyses of insurance companies and grade them. These ratings carry no guarantee of accuracy but can provide you with information on how some analysts view the health of particular insurance companies. Different agencies use different rating scales, so be sure to find out how the agency labels its highest rating as well as the ratings for the companies you are considering.
Don't buy multiple policies
It is not necessary to purchase several policies to get enough coverage. One good policy is enough.
Your medical history is extremely important
Accurately disclosing your medical history is extremely important. Make sure you fill out the application completely and accurately. If an agent fills out the application for you, don't sign it unless you have read it and made sure that all of the medical information is correct. If information about the state of your health is misstated, incomplete, or wrong, the company will refuse to pay your claims and cancel your policy. For that reason you should always fully and completely explain the full extent of your medical condition. If you are unsure about any particular item be sure to state "do not recall." And as a catchall to protect yourself, always refer the carrier to your doctors' records of the care provided to you and list the names and address of your doctors. |
