Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Long-Term Care Planning

LTCI guidelines from NAIC

By staff Writer

X
Your article was successfully shared with the contacts you provided.

While carriers are doing what they can to make long term care insurance policies easier to understand and buy, it still can be a daunting process for consumers who don’t deal with the product every day.

The National Association of Insurance Commissioners has a guide for consumers looking into LTCI, “A Shoppers Guide to Long-Term Care Insurance.” The guide advises consumers that the earlier they buy LTCI the more affordable it is, and it makes the case that without LTCI people’s assets can be drained by a not-too-long stay in a nursing home or by care at home.

NAIC tells consumers their LTCI policies should include the following:

  • An outline of coverage that clearly describes in detail the policy’s benefits, terms and limitations.
  • The right to cancel the policy for a full refund within 30 days of purchase.
  • An inflation protection option that doesn’t require further evidence of insurability down the road.
  • A description of the elimination period, specifying the number of days that must be spent in claim status before coverage takes effect.
  • A guarantee the policy cannot be canceled or terminated due to age or physical or mental health condition.
  • At least one year of nursing home or home health care coverage, or both, including intermediate and custodial care.

Some advisors may require more than that, even, but that is what NAIC recommends to consumers who visit its Web site.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.