Consumer-friendly California Long Term Care Insurance PoliciesCalifornia long term care insurance policies are generally considered more consumer friendly than those in other states. This is because their insurance policies have many features that protect the interest of consumers or policy holders. Moreover, all policies require the approval of the California Department of Insurance (CDI). The state recognizes these as contracts between the insurance companies and the policy holders. There are three kinds of California long term care insurance policies. A policy may be a Nursing Facility and Residential Care Facility Only, Home Care Only, or Comprehensive Long Term Care. The first kind covers costs and expenses incurred from skilled, intermediate and custodial care services from nursing homes and similar facilities. This also covers assisted living care provided by a Residential Care Facility for the Elderly (RCFE). A Home Care Only insurance policy, on the other hand, covers only expenses used for home health care services. Finally, a comprehensive California long term care insurance policy is a fusion of the two other kinds of policies. It must provide eight benefits to its policy holders which are a nursing home benefit, a RSFE benefit, six home care benefits which are as follows Adult Day Care, Home Health Care, Homemaker Services, Personal Care, Respite Service and Hospice Care. In order to start benefiting from a California long term care insurance policy, the physical or mental abilities of a policy holder must be hampered by one out of three standards or benefit triggers. In California, these standards are impairment in Activities of Daily Living (ADLs), Impairment in Cognitive Ability and Medical Necessity. The first benefit trigger uses ADLs as basis to determine the qualification of the person to the benefits of the policy. Inability to do any two of six ADLs qualifies the person to certain benefits. These activities are bathing, dressing, transferring, eating, toileting and continence. Impairment in Cognitive Ability, on the other hand, refers to the loss of intellectual faculties of a person due to a mental disease or illness. The last benefit trigger is medical necessity which implies that a qualified physician has certified that the medical condition of a person will deteriorate without the recommended nursing and medical care. California long term care insurance policies have features for protection of consumers. For example, all individual policies should be guaranteed renewable. This means that the insurance company cannot cancel the coverage provided that premium payments are made on time. Insurance purchasers also enjoy a 30-day free look which allows them to read and review the policy thirty days after they receive it. They can return the policy within this period if they change their mind and they will be immediately refunded. Also, insurers are required by law to offer potential purchasers the option to avail of an inflation protection feature. Moreover, California long term care insurance policy holders can also choose to reduce their benefits for lower premiums. All insurance policies are reviewed by the California Department of Insurance and are subject to the rate stabilization law. The premium rates would have to be approved by the Department including subsequent premium increases. |