Insurance - Long-Term Care - Undesirable Policy Options

Long-term care insurance can provide peace of mind to those who are concerned about how they will finance long-term care, if needed. It can also provide significant financial assistance to buyers. However, some policy terms can negate many of the benefits of coverage. It is critical that buyers of long-term care insurance understand what these terms are so they can spot them in policies they are considering.

Medicare Basics

The Health Care Financing Administration (HCFA) administers Medicare, the federal government's health care insurance program for the disabled and the elderly. The HCFA contracts with private insurance companies to review and process the claims.

Medicare Part B - Supplemental Medical Insurance

Two types of individuals are eligible for Medicare Part B coverage: (1) patients who are eligible for Medicare Part A without paying premiums; and (2) individuals older than 65 years of age who are U.S. citizens, U.S. residents, or legal resident aliens who have lived in the U.S. for at least five years.

Social Security - Survivors' Benefits

The Social Security Administration pays Survivors' Benefits to certain family members of a worker who died after becoming eligible for the benefit. For each three-month period of employment, a worker gains one credit.

Insurance - Long-Term Care - Potential for Fraud

Insurance companies, perhaps more than any other type of company, depend upon written contracts to define the terms of their liability with their customers. Like other companies, their attorneys carefully modify their contracts to comply with laws governing the insurance industry.