Long-term care insurance: The importance of annual reviews
Long term care insurance is just like any other piece of your financial puzzle. Periodic monitoring can help ensure your insurance continues to meet its desired objective. An annual review provides an opportunity for you to re-examine your coverage, analyze relevant Federal legislation that may impact your policy, and assess any changes in your personal financial situation.
Items for review
Once a year, review your policy contract and its terms. You may want to pay particular attention to the following items: the existing coverage amounts, criteria for receiving benefits, and procedures for filing a claim. If you have chosen an inflation protection option, re-evaluate your current benefits with respect to projected costs for long term care. Your policy may also carry a provision to upgrade your contract without additional underwriting.
If you own a tax-qualified policy, it is important to be aware of any Federal legislation that may affect your policy. For example, a portion of your premiums may be deductible, depending on your age and the total amount of your deductible medical expenses. Consider consulting a tax professional for more information.
Changing circumstances, changing needs
An annual review also gives you an opportunity to examine your current financial situation and determine what impact recent circumstances may have on your existing long term care plan. It is important to make sure your coverage is working towards your short-term and long-term financial goals.
Staying current also means knowing how your long term care coverage fits into your overall estate plan. Look at your policy in the context of your wealth transfer strategy, and fine-tune your estate plan with a financial professional, as needed.
Long term care insurance can help preserve your assets, increase options for care, and manage the financial and emotional burden of caregiving on your loved ones. After obtaining coverage, don’t leave your policy in a drawer to gather dust. An annual review can help ensure your coverage continues to address your extended care needs in the future.
This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.
This article was prepared by Liberty Publishing, Inc.
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