Colorado Long Term Care Insurance

Written by Norene Anderson
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Colorado long term care insurance carriers have the right to raise premiums as needed. Policies are guaranteed to be renewable, but the premiums may go up. The insurance carrier cannot single out individuals for a rate increase, but they can raise the monthly cost for an entire class of policyholders. If you find a carrier with substantially lower premiums than other providers, you should check on the rate increase policy and history.

Careful evaluation of your financial worth should be considered before taking out a long term policy. If you have no assets to protect, it is quite probable that you cannot afford the premiums for long term coverage. Medicaid will pay for impoverished individuals to have most benefits provided by a long term care policy.

Evaluate Colorado Long Term Care Insurance Plans

Buying a long term care policy is quite different from buying home or auto insurance. With the latter, you buy expecting not to use the protection. This provides a higher margin of profit for the insurance carrier. Long term care insurance, however, is a different story. The insurance carrier knows that the likelihood of a payout is well over 50 percent. That has a huge impact on the monthly premium. It is expected that premiums will go up considerably as the insured ages.

It is important to evaluate the prospect of income through the aging years. Since the probability of increased premiums is very high, it is quite possible that the insurance plan will become unaffordable at the time of life that it is needed the most. Insurance carriers are willing to take the risk that many will have to cancel the policy before benefits are paid out.


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