Long Term Care Insurance Expert Offers Buying Tips To New York Consumers

July 28, 2012 - PRLog -- It’s easy to make common mistakes when looking into long term care insurance protection.  The result can be purchasing inferior coverage as well as paying far too much.

That was the advice shared with consumers this week by Jesse Slome, executive director of the American Association for Long-Term Care Insurance http://www.aaltci.org, the national organization that advocates for long term care.  “No one likes to make mistakes but after you’ve signed and paid it is generally too late to do anything about it.”  Switching policies after two or three years rarely takes place the executive pointed out because premiums are based on the age when you apply for new coverage for the first time.

According to Slome the three mistakes are, failing to compare costs from at least three leading insurance companies, buying from inexperienced insurance agents or financial advisors who do not understand the nuanced differences between policies and buying too much insurance.

“Each insurance company sets their own prices and they can vary significantly,” Slome explains.  “Many agents only show the client one insurance company which may be the best, but probably isn’t unless they have compared it with other plans.”  Because consumers cannot buy or get prices directly from insurance companies, Slome advised the consumers to ask their agent how many companies they are able to sell.  “If it’s only one, then you need to get a comparison cost quote yourself.”

Most insurance and financial advisors sell long term care insurance on an incidental basis Slome notes.  “They may have acquired expertise but the way to test their knowledge is to ask how many policies they sell over the past year,” he advises.  “You want to know if they have actually read the policies they sell because chances are you won’t and the language in the policy governs whether you’ll be paid come claim time.”

Overbuying is a problem that can be costly for consumers.  “A knowledgeable agent will spend time explaining your options and will be aware of the cost-effective use of newer policy provisions such as the shared care option whereby two spouses share access to each other’s benefit pool,” Slome explains.

The American Association for Long-Term Care Insurance is headquartered in Los Angeles and serves the public by educating Americans about the importance of planning for the risk of needing long term care.

For additional information on long term care insurance costs http://www.aaltci.org/long-term-care-insurance or to connect with a specialist member of the Association call (818) 597-3227 or visit the organization’s website.