Long Term Care Coverage: 6 Tips Before You Buy

When someone in the family is diagnosed with a long-term illness, it has a negative effect on us both emotionally and financially. Taking long term care of someone can be extremely expensive, the cost of which can run from few thousands to even lakhs per month. The need for long term care in fact goes up as people age. The percentage ageing population of India is increasing. As per projections, by the year 2021, 16% of India’s population will be senior citizens.

Planning for such emergencies is important, although most of us don’t. People wake up only when the damage is already done. However, a timely decision to invest in a long term health insurance, term life insurance can save everyone hard earned money.

Below are 6 tips that everyone should know about long term insurance coverage:

1. Start Young:

Long term care coverage premiums are directly linked to age. The younger you are, the cheaper it will be. Moreover, when we are young, we tend to have better health than when we grow older. So chances of getting a higher coverage are better when you are young. However, if you haven’t started yet, any age is a good age to buy a long term coverage plan.

2. Weigh Options Before Committing to a Single Plan:

Long term care coverages can be expensive. However, don’t get bogged down by the cost. Check out all plans to see exactly which one fits your need. In case you have a chronic condition, do choose a policy that covers long term effects of that condition. Moreover, when you calculate the long term care benefit that you will be getting when required, do factor in inflation. The value of money after decades will not be the same as the value of money today. Policies which keep up with inflation, however, can prove to be more expensive than the ones which don’t.

3. Know the Coverage

Know what is covered in your policy. Each policy covers different types of dependencies and hence you should know exactly what to expect for. The common activities with which one needs help includes dressing, eating, using the toilet and bathing. According to experts, a coverage should start when you need help with at least two of these four activities.

4. Know the Time-Periods

Buying a policy does not mean that the coverage would start off right away. In most cases, there is a time lapse between buying a policy and start of coverage. This is usually referred to as a ‘Waiting Period’. Waiting periods can range from a month to a year. Remember, you are not covered during the waiting period and you will have to shell out money from your own pocket during this time. Hence, check the waiting period before you buy a product.

5. Know the payment procedures

Check out the payment procedure before you invest in Compare insurance plan. Some may require you to first make the expenditure from your pocket and reimburse you later once you submit your bills, others may pay the money as a lump sum. See which option works best for you and then make the final decision.

6. Know the Agent

In India, the insurance purchase process is largely dependent on the knowledge of insurance agent. Choose an agent who has good knowledge of the products to explain to you the pros and cons. Although an insurance agent will pose as a friend, but remember, he/she works for money. Hence, do not depend fully on your agent. Know the terms and conditions well before taking the final call.

Long term care coverage is a useful coverage to invest in. We hope by following these tips, you will be able to invest in the right kind of insurance plan for you and your loved ones.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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