Long Term Care Benefit Options Companies Must Offer in Texas

Long Term Care Benefit Options Companies Must Offer in Texas

Though long term care policies in Texas come in various types and diverse coverage, all policies must offer certain optional features the state regulates for an additional premium.

Inflation Protection

This is one of the most important benefits an LTC policy must provide. We know for a fact that costs for long-term care may increase significantly over time. If you purchase a benefit that would be the average daily wage of the costs of LTC today, it might only cover a fraction of the cost of LTC five or 15 years later. Thus, protection against inflation is a very important addition in a policy. The amount of additional costs for this benefit depends mainly on how old you are when you buy the policy.

In Texas, inflation protection must include a graphic comparison of benefits on a policy with and without inflation protection over a 20-year period and must be offered in at least one of the following three ways, including: (a) Benefits automatically increase by at least 5 percent each year, compounded annually, (b) The initial amount is increased by 5 percent compounded annually at the time of policy renewal. If you do not want to increase, you must reject it in writing within 30 days from the date of policy renewal, and, (c) The policy can cover a specified percentage of actual or reasonable charges for as long as you own it, with no maximum daily limit or policy limit.

Non-forfeiture Benefits

Insurance providers are also required to offer guarantees that a policyholder will get some benefits that he paid, even if he later cancel or lose the coverage. This benefit is termed "non-forfeiture benefits" which adds more significance to a policy's premium, depending on factors such as your age at the time of purchase, the type of benefit offered, and whether the policy provides for inflation protection.

However, methods vary in terms of determining the type and amount of non-forfeiture one must receive and they differ in cost as well. If a policyholder decides not to obtain a non-forfeiture benefit, he must reject the offer in writing and the company must offer a contingent lapse benefit each time it raises your premium substantially. A contingent lapse benefit allows a policyholder to choose a reduced benefit amount for premiums will not increase or convert your policy to a paid status.

Other optional benefits are also offered by most insurance providers in TX. But, this totally depends on the company for it may charge an additional premium. These optional benefits are as follows.

Waiver of Premium

This arrangement allows a policyholder to stop paying premiums once he is finally situated in a nursing home and the insurance company began paying benefits. Some companies waive the premium as soon as they make their first payment. Others wait 60-90 days. This provision does not apply if you receive benefits under certain provisions of your policy.

Refund of Premium Benefits

With this option, part or all of the premiums, less the claims paid under the policy will be refunded if you cancel the policy. Reimbursement will be made to your beneficiary if you die. In general, a policyholder must have contributed for several years before this benefit becomes effective.

POST COMMENT

Social Media is Right For Small, Medium and Large Business Types of Long-Term Care Policies in Texas "The winner of the Surrey Business Person of the Year Award is ….Andrew Reynolds" Business Financing without Banks Update How to Caffeine-Ate Your MLM Business Instant Loans - Supply Of Urgent Cash Own Business - Advantages and Consequences of Being Your Own Boss Method Of Creating Business Letter Begin A Business Online. It's Easier Than You Think Optimizing Small Business Website Utility With Professional Web Design Applying For Government Grants For Small Businesses | Initial Alternatives For Starting A Business The Importance Of Web Page Design For Your Business Business Website Hosting Disadvantages