Long-Term Care Insurance

Long term care insurance (LTC) is an insurance product which pays for long term care services in many settings, such as at home, a nursing home, assisted living facility, and adult day care facility,


Many people elect to buy long term care insurance so they will not need to deplete their savings should they need long term care services. Long term care insurance can help ensure that financial resources and support are in place when you need them.

Because of old age, mental or physical illness, or injury, some people find themselves in need of help with eating, bathing, dressing, toileting or continence, and/or transferring (e.g., getting out of a chair or out of bed). These six actions are called Activities of Daily Living–sometimes referred to as ADLs. In general, if you can’t do two or more of these activities, or if you have a cognitive impairment, you are said to need “long-term care.”

Long-term care isn’t a very helpful name for this type of situation because, for one thing, it might not last for a long time. Some people who need ADL services might need them only for a few months or less.

Many people think that long-term care is provided exclusively in a nursing home. It can be, but it can also be provided in an adult day care center, an assisted living facility, or at home.

Assistance with ADLs, called “custodial care,” may be provided in the same place as (and therefore is sometimes confused with) “skilled care.” Skilled care means medical, nursing, or rehabilitative services, including help taking medicine, undergoing testing (e.g. blood pressure), or other similar services. This distinction is important because generally Medicare and most private health insurance pays only for skilled care–not custodial care.


How does LTC insurance work: First of all, you do have to apply and be approved (it is medically underwritten). Here is list of some of the different benefits.


What should I look for in LTC coverage: There are several items you should consider. First, consider the geographic area where you will most likely be receiving the LTC services. Prices do vary in different areas. Benefit payments are a set amount, so the lower the benefit amount the lower the premium. If you have savings you could use, perhaps a LTC policy and savings could be a cost-effective option. Keep in mind the rising costs of expenses when selecting an inflation protection option. If you would like more in depth information or further explanation of different LTC policies, here is a link.



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