How to buy long-term care health insurance for seniors; new regulations needed

Millions of Americans are hoping and some even are expecting to live into their 90s, but they don’t have the long-term care insurance that would make their long lives affordable and more comfortable.

Having shopped for long term care insurance, I can tell you that figuring out what’s affordable and makes economic sense is very difficult.

It is difficult to find an experienced agent to help you with the search. You need someone who represents several insurers and has been in the business for a long time, not a newby who is representing one insurer. If you have a financial advisor, ask him or her for the names of several insurance agents, but don’t use the financial advisor as a long-term care insurance agent. Few financial advisors spend enough time in the long-term care insurance markets to be experts in those markets. You need an expert. If a financial advisor claims to be an expert in long-term care insurance, I’d wonder whether that advisor was more interested in earning commissions or in helping me. It’s human nature to take care of yourself first.

Then you need to know what questions to ask, which is difficult for even those of us who know health insurance and health care and have lived with elderly parents and other elderly relatives.

In the June 26, 2009, edition of the New York Times, Walecia Konrad, the daughter of a 92-year-old man, gives some pointers on shopping for long-term care insurance. In addition to following her advice, talk to several agents. The more people you interview, the better you’ll understand your options. Don’t let the first agent you interview make the sale. Talk to half a dozen or so agents, read the policies they offer, and then decide.

Consumer Reports also has published useful articles on long-term-care insurance. You can find back issues of Consumer Reports at your library or at http://www.consumerreports.org.

Another resource may be the free subscription newsletter LTC123.com.

Many people are benefitting from long-term care insurance. And many others have been disappointed when they claimed coverage.

The long-term care insurance industry is very good at confusing and misleading its prospects and customers.

States and the federal government need to rewrite long-term care regulations to make it easy for consumers to evaluate the insurers’ offerings.

But insurers buy off state and federal legislators and even state insurance commissioners with campaign contributions.

So don’t look for the long-term care insurance market to be cleaned up anytime soon.

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