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The long term care game plan

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  • Only use highly rated providers. Reference A. M. Best, Moody’s and Standard and Poor’s for credible ratings information.
  • Examine multiple policies from various companies, but use those that allow clients to hire at home not only a licensed home agency caregiver but also a paid private caregiver. Most LTCI policies reimburse caregivers at home.
  • Recommend three- to five-year coverage with a 5 percent compound, uncapped inflation rider even at older ages. This is usually better than consumer price index or cost-of-living adjustment options.
  • Target clients should be between 50 and 60 years of age as premium cost increases with age.
  • Don’t just look at one company. For a complete picture, you need to understand the differences between them. Compare regular policies with NY Partnership policies to understand the differences in coverage flexibility.
  • LTCI costs should be about 5 percent – or less than 10 percent – of after-tax income.