When someone asks me how to choose a life or health insurance policy, my answer is: It depends on your personal situation. this includes how much you can afford, your preferences regarding long-term care options, and the level of risk you're willing to take.
Keep the important factors in mind:
•Make sure you understand what the policy covers and what it doesn't.
•What conditions are required to qualify for coverage?
•How long will you need coverage?
•What are the renewal terms? (The best policy is one that is guaranteed renewable, which means the insurance company cannot cancel the policy unless you fail to pay the premiums.)
•Does your policy keep up with the rising costs so that you are protected from inflation?
The United Seniors Health Cooperative recommends longterm care policies that automatically increase benefits at the rate of 5 percent annually. Compounded inflation protection is recommended for people applying up to the age of 70 and simple inflation for those applying after 70. Though this coverage will cost you more, it will likely pay off in the long run. To be able to afford the extra coverage, you can choose a policy with a shorter benefit length or a less comprehensive policy.
No one said that picking insurance policies was going to be fun, but when you need it and it pays off, you'll be happy you bought the right ones.