Not reading the long-term care insurance policy both before and after it is has gone through underwriting.  “Underwriting” is the insurance company’s review of your application for the purpose of determining your eligibility for coverage and for pricing your policy.  You will receive a generic sample copy of your policy before you apply for coverage, and then after underwriting, but before the policy is issued, you will receive a completed copy of your policy with your specific information filled in.  The filled-in policy may be significantly different from the sample policy.  The filled-in policy may contain errors made by the insurer's clerical staff that affect your coverage years later.
Being too casual when you are interviewed over the phone by a long-term care insurance company regarding your medical history.  This interview occurs during underwriting (see Pitfall 1). Alzheimer's-type disorders are a common cause of someone needing long-term care at home or in a nursing home.  One purpose of the insurance company can be to ask you tricky questions that screen for pre-Alzheimer’s-type tendancies.  For example, you may be asked to say part of the alphabet backwards, or recall details of the first part of the phone call.  Not paying attention could raise questions about your health.

Waiting too late in life to apply for long-term care insurance. Waiting to apply for long-term care insurance after health conditions have developed can result in an unaffordable premium.  (Many people start shopping for long-term care insurance when they are in their late fifties.)

Not asking how your long-term care insurance coverage will change if you move to another state, if you believe there is any chance you will ever move to another state.
Buying too much long-term care insurance coverage, resulting in the premium becoming unaffordable for you when the premium increases (which results in you letting the policy lapse, after having paid for it over many years).
Buying long-term care insurance despite your net worth and annual income below the level that warrants protecting.
Relying on an out-dated financial rating of an insurance company who's rating recently was down-grading by one of the rating agencies (for example Standard and Poors).
Not comparison shopping beyond one insurance agent and and not considering multiple coverage options and insurance companies.
Relying mainly on an insurance agent’s evaluation of your needs, without doing your own research.
Not updating your policyholder information.  For example, not removing a deceased insured from the policy in order to get a reduced premium.
Long Term Care is EXPENSIVE! Learn how Long Term Care Insurance can save YOU from FINANCIAL HARDSHIP!
 

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