Long Term Care Insurance: An insurance policy that covers the costs of extended care services to people who are unable to perform the basic activities of daily living, or referred to by the insurance policy as ADL’s. Such actives include: dressing, bathing, eating, and toileting, continence, transferring one’s self in and out of a bed or chair, and walking. The services covered are usually not covered by traditional health insurance, Medicare, or Medicaid. Premiums paid into a Long Term Care policy may be eligible for an income tax deduction for the individual paying premiums, or a business paying into an employee’s policy. The benefits paid by the policy are excluded from income.

A Long Term Care policy (LTC) can be purchased at any age, but costs can be very expensive for people who qualify for policies later in life or who qualify with pre-existing conditions. LTC coverage includes services that are provided through home care, assisted living, adult daycare, hospice care, respite care, nursing home care, and Alzheimer’s facilities. It also covers care to an individual who requires a home therapist, live-in caregiver, house keeper, live-in nurse or companion.

There are many options included in a Long Term Care policy that must be considered by an individual at time of purchase, which may affect the cost and distribution of benefits of the policy. The individual can choose the type of services covered in the policy, the period of the benefits provided, the payment time by the insurance company for benefits, inflation protection, a non-forfeiture benefit option, and the availability of couple discounts and group rating. The purchaser should make sure conditions in the policy are stated clearly concerning time of eligibility of benefits, elimination or waiting periods, stoppage of premium payments when services rendered, refund agreements, and specifications concerning types of care services detailed in the policy. These key factors included in a LTC policy should be discussed and explained in detail with a licensed agent at the time of purchase.

At United Benefit Solutions our licensed agents can help you choose a Long Term Care Policy that is right for you. 

A few of our Long Term Care Providers include:

Genworth
William Penn
Aviva
Companion