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8 ways LTCI issuers handle border crossings

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Some of your long-term care (LTC) planning clients might want to their savings by retiring in a low-cost country.

Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI), says you ought to study international benefits provisions carefully, and make sure your clients include any cross-border moves in their LTC thinking as early as possible.

Slome says AALTCI compiled a collection of LTCI policy international coverage provisions after getting a number of calls from consumers who are thinking about retiring in countries such as Costa Rica or Panama

AALTCI wrote a report about LTCI policy international coverage provisions based on a random sampling of policies from eight different issuers. Because policy provisions may vary dramatically from state to state, and from policy to policy, AALTCI referred to each of the eight issuers by a letter, from A to H, rather than by name.

The company created a short summary of the international policy provisions for each of the eight issuers.

To learn what AALTCI found in policies it reviewed, read on.


1. Company A

Outside the United States, the company covers up to 50 percent of the nursing home benefits maximum and up to 25 percent of the maximum for home health care, limited to 365 days. The maximum benefit time period is four years. The need to pay premiumsis not waived if the policyholder is receiving benefits overseas.

See also: 6 steps to an overseas retirement plan


2. Company B

Worldwide, this company pays 100 percent of the daily benefit or the maximum benefit up to a one-year limit (except for hospice care, additional stay-at-home services, or care advisory services).

See also: Multiple Cultures, Multiple Financial Needs


3. Company C

This company has no international coverage exclusions.

See also: Retiring abroad: Saving money, finding adventure


4. Company D

This company offers global coverage for up to 365 days. The payment is equal to 75 percent of the maximum daily benefit.

See also: 10 best and worst states for retirement


5. Company E

Outside the United States, benefits are paid up to 50 percent of the daily benefit amount.

See also: The 10 best places to retire overseas in 2014


6. Company F

Outside the United States, the company pays 100 percent of the monthly benefit for facility care or 50 percent of the monthly benefit for home and community care, but for a maximum of only one year.

See also: LTCI Watch: The world


7. Company G

Outside the United States or territories, total benefits are limited to 100 times the nursing home daily benefit.

See also: 6 steps to an overseas retirement plan


8. Company H

The policy pays full policy benefits if the insured is in Canada or the United States. The policy pays no benefits in any country other than the United States and Canada.

See also: Top 15 best foreign countries for retirement: 2014


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