 
Health Insurance California >> Long Term Care >> Long Term Insurance Replacement Replacement of Existing Insurance Policy with a Newer One The advantage of replacing an older insurance policy is that newer policies might offer more attractive insurance benefits and features with fewer restrictions. Assisted living in an RCFE, Home Care benefits, Inflation Protection, and no necessities for a previous hospital stay are some of the insurance benefits and other features being offered in current long-term care insurance policy products. However, just because an insurance policy is newer does not necessarily mean it is better than the one you have. One disadvantage to replacement is that the insurance company would charge higher premiums as you are older than you were when you bought your actual insurance policy. In addition, if you have any preexisting conditions or is 80 years old or even more, companies might refuse to issue new insurance coverage. If you are still insurable you may consider adding new insurance coverage to the benefits you anyways have, or buying an additional insurance policy to supplement your available benefits. Even very old insurance policies still provide good benefit, and the premiums are often much less expensive than the premium for a brand new insurance policy at an older age. Before you add benefits to an existing older insurance policy you should check with your qualified agent, company, or tax advisor to see if you would lose the grandfathered tax status granted policies purchased prior to January 1, 1997. If you are considering replacing an older insurance policy,
first ask your qualified present agent or insurer if you could update
your insurance
coverage. If you replace your insurance policy with the same company
you are likely to receive a credit for some percentage of the premiums
you have already paid against the new insurance premium. Another possibility
is to keep the older insurance policy and add a newer one to supplement
the daily insurance benefit in the old insurance policy, or add some of
the newer insurance benefits not existing in the older insurance policy.
Adding another insurance policy won’t cause the loss of any tax advantages
you have for the older insurance policy. Whenever you are considering
replacing an insurance policy, consulting a HICAP counselor is recommended.
For more informations on our services contact insurance brokers John Good | Kelly Good |
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