What is Long-Term Care Insurance?


Long-term care insurance is a type of insurance developed specifically to cover the costs of nursing homes, assisted living, home health care and other long-term care services. These services are usually not covered by traditional health insurance or Medicare.

The majority of policies sold today are comprehensive policies. They typically cover care and services in a variety of long-term care settings:

What Isn't Covered by Long-Term Care Insurance

Like all insurance, long-term care policies have exclusions. These exclusions often follow state regulations on what exclusions are allowed. Long-term care policies typically exclude:

  • Care provided by a family member
  • Care provided outside the United States of America. However, a growing number of policies have an international care benefit.
  • Care that results from war or act of war
  • Care that results from an attempt at suicide or an intentionally self-inflicted injury
  • Treatment for alcoholism or drug addiction
  • Treatment provided in a government facility
  • Services that are covered by Medicare or other government program (except Medicaid), or workers' compensation

To learn what exclusions apply to a policy that you are considering, check the Outline of Coverage you receive before you apply. If you already have a policy, you will still have an Outline of Coverage that lists any exclusions.

At what age should you buy long-term care insurance?

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I'm a real fan of long term care insurance. As mentioned in many articles and discussions it should optimally be purchased while people are in their 50's. Having said that - however there are some wonderful solutions that a good LTC expert can purchase for those who are older by conversions of existing life insurance policies or even changing up some plans. Many people today did not purchase LTC insurance so they are looking for solutions - asset reallocation with a strong eldercare attorney is the best avenue so a person can apply for financial assistance so they can keep their money and not die pennies while qualifying for care.
Long term care (LTC) insurance is a kind of annuity that secures financing your future long term care needs. If you are unable to perform at least two or three of the daily activities like dressing, eating, bathing or getting out of the bed, then you required to be on ltc. Or if you have a condition (e.g. alzheimer's) even if you are able to perform these things, you are still subject to be ltc dependent. It provides you with different settings based on your needs. You can get more comprehensive information about ltc insurance here:
Long term insurance can be wonderful and take a lot of concern and worry away from families. However, read the policy carefully. Most of these policies will only cover for 2 to 5 years and no longer. 5 years is the longest I have ever seen. Some of them want you to pay for the care out of pocket and then reimburse you. Then they are not real quick to do that. That's what my fathers policy required. Just be careful.