Long term care insurance (LTCI) is a way to pay for long term care in a nursing home, one’s own home or assisted living facilities. LTCI is not appropriate for everyone and there are a number of factors to consider when thinking about purchasing a policy including your financial ability to pay for the monthly premium, total assets and how you wish those to be utilized for long term care or other purposes, health status, and your age.

If you are considering purchasing a LTCI policy for yourself or someone else in your family, below are some points to keep in mind as you shop for long term care insurance in Michigan:

Ask Questions – if you have questions or concerns about LTCI, an agent, an insurance company or a policy, there are a variety of resources to turn to:

The AAA 1-B’s Medicare Medicaid Assistance Program has trained volunteers that can answer general questions and provide an information packet about LTCI at 1-800-803-7174.

Michigan’s Office of Financial & Insurance Services (OFIS) can provide various information including the latest rate information filed by any company marketing long term care products in Michigan at 1-877-999-6442 or www.michigan.gov/ofis.

Pick a Reputable Agent – Many professions including attorneys, financial planners and insurance agents may be licensed to sell LTCI.  Get a business card and call the company to make sure that person is employed there and licensed to sell insurance.

Shop Around – Check with several insurance companies and agents before making a decision.

Check the Company’s Financial Stability – The following companies rate insurance companies:

A.M. Best Company 1-908-439-2200 www.ambest.com
Demotech, Inc. 1-614-761-8602 www.demotech.com
Fitch, Inc.    1-800-753-4824 www.fitchratings.com
Moody’s Investors Service 1-212-553-1653 www.moodys.com
Standard & Poor’s 1-212-208-1527 www.standardandpoors.com
Weiss Research, Inc.  1-800-289-9222 www.weissratings.com

Never Pay in Cash – To avoid fraud, your payment should be a check or money order made out to the company, not to the agent.

Read the Policy Carefully – When you receive your policy in the mail, make sure it is what you thought you were buying.  In Michigan, all long term care policies have a thirty-day “free look” period.  If you decide that you do not want the policy, you are under no obligation and will receive a total refund of any premiums already paid if within the 30-day “free look” period.

Remember the Area Agency on Aging 1-B can provide you with nonbiased information on long term care insurance to help you make a decision if this insurance is appropriate for you or someone else in your family.  You may speak with a trained counselor at 1-800-803-7174 between 8:00am and 5:00pm Monday through Friday.