Long Term Care Insurance
Unlike traditional health insurance, long-term care insurance is designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home, a community organization, or other facility.
What is it?
Long term care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating. You can select a range of care options and benefits that allow you to get the services you need, where you need them.
The cost of your long term care policy is based on:
If you are in poor health or already receiving long term care services, you may not qualify for long term care insurance as most individual policies require medical underwriting. In some cases, you may be able to buy a limited amount of coverage, or coverage at a higher “non-standard” rate. Some group policies do not require any underwriting.
What does it cover?
Most policies sold today are comprehensive. They typically allow you to use your daily benefit in a variety of settings, including:
In the home setting, comprehensive polices generally cover these services:
Buying Long Term Care Insurance
People with certain conditions may not qualify for long term care insurance. Since standards vary between different insurance companies, if one company denies you, it is possible that another company will accept you. Common reasons why you might not be able to buy long term care insurance include:
Insurance companies also consider other health conditions when determining your eligibility. If you buy your long term care insurance before you develop one of the health conditions listed above, then your policy will cover the care you need for that condition.
Before You Buy
You should consider a number of things before purchasing Long Term Care insurance:
How Do I Apply?
Most people buy long term care insurance directly from an insurance agent, a financial planner, or a broker. Some important points: