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Long Term Care Insurance

Long Term Care insurance for the Young and Old

Long term care insurance (LTC) is coverage that is not found under a regular health insurance plan. Recipients are people who live at home or in a nursing home but cannot care for themselves independently. They are covered for the daily expenses of being cared for by health providers. LTC insurance rates and benefits vary by the policyholder’s age and personal needs.

Major Benefits

Care insurance is available to people living with the long-term effects of major diseases, such as cancer, stroke and Alzheimer’s. They cannot live independently and require long-term medical care from a home health aide or nursing home. In addition, many of them are elderly and retired, so they lack the stable income to pay upfront for their care needs. Some nursing homes cost more than $5,000 a month, and some home health aides are cheaper but cost hundreds of dollars a month. Insurance gives people the option to pay a monthly premium that does not exceed $100.

Long term insurance is also promoted to individuals who are not suffering from serious diseases. The recipients’ age groups include infants, teenagers, young adults and people in their 70s. They need caretakers to help them complete basic tasks, such as walking, running errands, bathing and getting out of bed. They are hesitant to ask their family members or friends for daily assistance. Some long-term care providers act as companions to those not able to leave the house often.

How the Policy Works

The two main types of LTC coverage are the tax-qualified policy, which provides non-taxable benefits, and the non-tax qualified policy.

Workplace benefits include primary health insurance, a retirement plan, life insurance and the option of long term care insurance. An employer has the choice to set up a group LTC insurance plan between a group of employees and the insurance company.

Your receipt of long term insurance depends on your inability to perform the Activities of Daily Living (ADL). The basic tasks include showering, eating, dressing, moving on your own and going to the bathroom. Showing an inability to do one or more these tasks qualifies you to receive LTC coverage.

Once you obtain coverage, choose the daily maximum limits. Also, choose the minimum benefits for home or facility care.