Should I Change to Another Long-Term Care Policy?

It may make sense to change to another long-term care policy if your current policy no longer provides the benefits or the amount of coverage you want. For example, if your current policy provides a $100 daily benefit amount for nursing home care, but nursing homes in your area charge significantly more, you may want to increase your coverage. However, before you decide to change policies, you should contact your existing insurance company and see if you can upgrade your current policy, and what the cost of the upgraded coverage will be. You will not automatically be eligible for upgraded coverage, but will be required to submit an application and answer medical questions. If you are in good health, you should qualify for the upgraded coverage if available.

If upgrading your coverage is not an option, you can keep your existing coverage and purchase an additional policy, or replace your current policy with one that has the benefits you want. However, before you cancel your current policy, make sure the new insurance company has accepted your application and issued a new policy to you.

You should not replace your policy merely because your insurance agent is working for another insurance company. The new policy will most likely be more expensive because insurance companies charge higher premiums for new coverage based on the applicant's current age.