Long Term Care

Long-term care insurance is a type of insurance developed specifically to cover the costs of long-term care services, most of which are not covered by traditional health insurance or Medicare. Comprehensive policies typically cover care and services in a variety of long-term care settings.

There is a great deal of choice and flexibility in LTC insurance policies. You can select a range of care options and benefits that allow you to get the services you need in the settings that suit you best.

LTC insurance policies have a benefit period or lifetime benefit maximum, which is the total amount of time or total amount of dollars up to which benefits will be paid. Common benefit periods for long-term care policies are two, three, four, and five years, and lifetime or unlimited coverage. Most policies translate these time periods into dollar amounts and do not actually limit the number of days for which they will pay for care – just the overall dollar amount that the policy will pay.

With the growing cost of care and an elderly population that is increasing faster than any other, long term care should be included in all financial plans. LTC insurance will help to protect your assets for retirement income or the transfer to heirs.

  • Premiums are paid in amounts you know in advance and can budget for, and the policy pays – up to its coverage limits – for the long-term care you need when you need it. Typically, premiums are waived during the time you are receiving benefits.
  • The cost of your LTC policy is based on the type and amount of services you choose to have covered, age when you buy the policy, and any optional benefits you choose, such as Inflation Protection.