Does the policy have a waiver of premium provision?
This provision means that you do not have to continue to pay the premiums once you begin collecting benefits. Some policies waive premiums starting on the first day benefits become payable; others require that benefits be paid for a certain number of days before premiums are waived. Can the company cancel this policy? Look for a policy that is guaranteed renewable. This means the company cannot cancel your policy as you get older and/or your health deteriorates. However, your premiums can go up. While you cannot be singled out for a rate increase, subject to approval from the State Insurance Department, insurance companies can raise premiums for a class of policyholders. How long has the company been selling long-term care insurance? Be sure to examine the financial strength and stability of the insurer. After all, you want the company to be around if you need coverage 15-20 years from now. A quick trip to the library or a search on the Internet can provide you with the company’s ratin
