International Long Term Care Insurance Benefits Vary Widely

As increasing numbers of Americans look to retire outside of the United States, understanding how a move can impact long term care insurance benefits becomes vital.

“Americans are choosing to retire all over the globe but that can affect the amount of benefits they can claim from their long term care insurance policy,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance.    Slome notes an increase in the number of consumers calling with plans to retire in countries like Costa Rica, Panama and Canada.

“They have already purchased long-term care insurance protection or want to get coverage in place before they relocate,” says Slome.  “We explain the policy small print can make a big difference come claim time.”

According to AALTCI examination of policies, many of the leading long term care insurers impose a limitation on benefits when care is needed outside of the United States or territories.   “You can purchase and pay for a policy designed to pay four years of benefits but if the limit is just one year you’ll either have to move back to the U.S. for care or give up the balance available,” Slome notes.

The Association recently posted details of how eight leading insurers address international benefits for their long-term care insurance policies.  “Only one company presently has no exclusions,” Slome notes.  “The others have a variety of limits and rules that apply.”