Long-Term Care Insurance

Long-term care insurance (LTC or LTCI) helps cover the cost of long-term care that extends beyond a specified period. It covers the care that is typically not covered by Medicare, Medicaid, or health insurance. Individuals who need long-term care are not sick in the traditional sense, but are unable to take care of themselves on an everyday basis. They have difficulty in performing the basic tasks like dressing, eating, bathing, and walking. You do not need to be at a certain age to need long-term care. If a change of health occurs, however, the insurance may not be available.

Long-term care insurance typically covered assisted living, daycare for adults, home care, respite care, nursing home care, hospice care, and Alzheimer's facilities. If you purchase home care coverage, the insurance can pay for it, often from the first day it is needed. It will cover a visiting or live-in caregiver, companion, nurse, or housekeeper for the entire week, round the clock, if needed. With long-term care insurance, individuals do not need to feel like they are burdening their families-in terms of physical and emotional care, as well as financial strain. Without long-term care insurance, the cost of these services would soar. Hiring a live-in companion or placing a loved one in a facility is very expensive without the assistance of an insurance provider. Further, premiums paid on a long-term care insurance product may qualify for an income tax deduction. The age of the covered person plays a role in determining the amount of the deduction.

In general, the insurance rates are determined by the age of the person, as well as the daily or monthly benefit, the elimination period, how long the benefits pay, the health rating, and inflation protection.