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Long Term Care Insurance

Many employers offer group benefits to protect their employees. While health or life insurance is more common, there are other important types of coverage that may be available. One of these possible options is long term care, or LTC, insurance. Long term care insurance pays for the level of care that is often required for those with chronic conditions or disabilities. This coverage typically includes the cost of a nursing home, home-based care, and respite services to relieve caregivers. As necessary as this insurance can be, many people are unfamiliar with it. Here is some basic information that may be helpful.

How Does It Work?

The age requirements vary, depending on the particular policy you’ve chosen. The key to determining eligibility for LTC policies is whether or not a person can perform the activities of daily living (ADL), or the degree with which they can do so. Activities of daily living include things like dressing, bathing, walking, and feeding oneself. Once you fail to meet these standards, your policy will pay a specified amount of money for the duration of the benefit period. How much money and for how long depends on the policy you chose.

What Are The Benefits?

This form of care insurance generally offers different types of options in order to meet varying degrees of ADL difficulty. Skilled nursing and intermediate care require attention from experienced medical professionals. Custodial or residential care doesn’t require medical skills, but must be based on a doctor’s orders. Home health care refers to any services that can be performed within an individual’s home. Some LTC policies also include benefits for adult day care. This is more social or recreational support for those who still live at home, but need assistance.

Thanks to the advancements in medicine, people are living much longer than in the past. This is a blessing, but it can also be expensive. A longer life expectancy increases the potential need for long term medical care. Many people believe that Medicare will pay for this level of care when the time comes. Unfortunately, this is not exactly true. Medicare only covers nursing home care as it relates to treatment for an injury or illness. Long term insurance is a way to protect your assets and secure the kind of future you want.