LTCI benefits could be severely limited for retirees moving abroad, reports AALTCI

As thousands of thousands of boomers continue to retire, Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI), reports a recent uptick in inquiries from consumers about what will happen to their long-term care insurance coverage if they move out of the country for retirement.

An estimated 1.4 million American retirees already live overseas, according to Kathleen Peddicord, publisher of Live and Invest Overseas. As increasing numbers look to retire outside of the United States, understanding how such a move can impact long term care insurance benefits becomes vital.

“More 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,” says Slome.

Slome notes an increase in the number of consumers calling the Association who announce 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 that the policy small print can make a big difference come claim time.”

According to an AALTCI examination of policies conducted in December 2014, 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 international 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 says.

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.”

To read the international policy benefits summary go to:

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The American Association for Long-Term Care Insurance (AALTCI) is a national trade organization committed to raising awareness of the importance of long-term care planning and supporting insurance and financial professionals who market LTC solutions.