With the ever-increasing demand for long term care nowadays, many insurance companies have added features, more commonly known as riders, among LTCi policies. Many insurers also attempt to make policies that are outstanding from their competitors.
Riders can be beneficial to your policy, but you must determine which particular rider is worth the bucks. Remember that some companies try to sell a couple of riders that you don't actually need, they are sometimes offered to boost the company's sales. When shopping for long term care insurance policies, always compare the policies and set of features offered from one company to another. This can be complicated, but it pays off.
According to Jesse Slome, executive director for the Americans Association for Long Term Care Insurance or AALTCI, long term care insurance policies must be "simple and affordable" and such riders must be comprehensive and stick to its promise. The following are different riders that may be available from insurance companies:
Spousal Benefit Rider
The spousal benefit rider is worth considering according to Slome. This rider allows each spouse to take control of the other's pool of benefits. Each individual may purchase plan or protection accordingly. Although this rider can increase up to 15 percent on the LTCi premiums, it provides maximum protection to each spouse for at least five or six years.
Home Health Care Rider
Most of the recent policies contain some form of home health care benefits. Tax-qualified policies are the most common today that allows certain long term care insurance tax deduction and follows some protection from the National Association of Insurance Commissioners and the Health Insurance Portability and Accountability Act (HIPAA). Most of these tax qualified policies automatically include some type of home health care. If you have non tax -qualified policy, ask your insurance agent if it can upgraded to receive home health care benefits.
Non forfeiture Benefit Rider
The state requires that all tax-qualified must have non forfeiture benefit riders. Insurers are required to offer the non forfeiture, but are not required for purchase. Consumers may choose whether to buy the non- forfeiture benefit or not.
As what the name implies, non- forfeiture riders give policyholders that their benefits won't get forfeited once they stop paying the premiums. The two types are cash back option or return of premium rider and the shortened benefit period. The cash-back option gives the refund to the policyholder's beneficiary due to death or freeze payment, while the shortened benefit period guarantees the policyholders to receive the benefits at the time specified in the policy. Both types normally raise your premium cost.
This is the most important rider so far. The costs of long term care are escalating every year; therefore, you should buy a rider that will protect your policy against the bothering price hike. This also prevents you from paying premiums that usually double or triple in few more years.