Long-Term Care Insurance (LTC)

The Basic Definition of Long Term Care Insurance

Long-term care insurance (LTC) is designed to go beyond basic healthcare coverage. You need basic care to pay for medications and temporary hospitalizations, but you need long-term care to pay for health problems that exceed basic care.

The Recipients

The recipients of LTC insurance are persistently sick or injured individuals. They are disabled in some way and cannot care for themselves without assistance. Their disability has continued for a long period of time, usually more than a year.

The elderly, the physically disabled, and the chronically ill are typical recipients. Old age is not a necessary factor to quality for LTC.

How the Coverage Works

LTC is designed to help people perform the most basic activities, including eating, showering, getting out of bed, and going out. A nurse or caretaker is paid to provide assistance on a daily or regular basis.

Receive coverage wherever you receive medical care, whether it is a private home, hospital, hospice, nursing home, or specialized medical facility. You have to pay premiums and deductibles like any other health insurance plan.

The rates are calculated based on a few factors, such as the individual’s age and health status along with the daily expenses and duration of coverage. Some plans allow you to pay the premium every month, year, or few months.

The Different Coverage Plans

There are regular and combination plans for long-term insurance. The combination option allows you to combine one or more policies, such as life and LTC insurance.
The reimbursement insurance policy is the most frequently used type of LTC. Receive reimbursements for the exact costs of your care services. You cannot receive more money than is allowed on the policy.

An indemnity policy allows you to exceed the monetary limits, but you have to pay for the excess.

Partnership LTC insurance lets you keep your Medicaid benefits and receive daily
funds for long-term care.

How to Get Coverage

Working individuals may be able to receive coverage through their employers. However, Medicaid typically does not provide funds for long-term assisted living. Some employers offer supplemental policies that include care insurance. Anyone interested in working and saving for long-term care should ask the employer for more information.