Let’s first define long-term care insurance by stating what it is not: it is not life insurance or disability insurance. It is not ordinary health insurance or medical expense insurance. These kinds of plans do not pay for long-term care expenses. Nor does Medicare cover long-term care. Medicaid will pay for long-term care but only after most savings and other assets have been spent down to very low levels. For these reasons,long-term care insurance (LTCI) may be a viable option for many as a way to pay LTC expenses.

Long-term care insurance typically covers the cost of the following:

  • help in the home with personal activities like bathing, dressing, eating, and the other ADLs
  • homemaker assistance services, such as cleaning and bill paying
  • visiting nurses
  • community programs, such as adult day care
  • assisted living services, typically including meals, health monitoring, and help with daily activities that are provided in special residential settings other than at home
  • skilled nursing care

A buyer has a number of ways in which coverage can be customized to meet his or her needs and budget. Among these options, a buyer can choose the following:

  • the care settings and services that are covered (nursing home only, home health care only, or both);
  • the daily or monthly benefit amount the policy will pay for services in each care setting covered by the policy;
  • the length and definition of the elimination period and/or deductible, if any, before benefit payments will begin;
  • the duration of benefit payments over the life of the policy;
  • inflation protection; and
  • nonforfeiture protections.

Policies require a doctor’s certification for treatment, some policies today pay benefits if a social worker, physical therapist, or other licensed health care professional demonstrates and certifies that the insured needs help with two or three ADLs. While the benefits and features of LTCI have become more complex, they have also become more practical in meeting consumers’ needs. As the demand for long-term care insurance increases, the variety and types of policies will also expand.

The younger your age when you purchase LTC the less expensive.  I purchased mine at age 35.

Please contact me for a personal discussion about Long Term Care Insurance.