What is long term care insurance?
Long-term care insurance is a type of private insurance designed to cover the costs of long-term services and supports, including personal and custodial care in various settings such as your home, assisted living facilities, nursing homes, or adult day care centers. It is primarily intended for individuals age 65 or older or those with chronic or disabling conditions who need ongoing daily support.
Key features include:
- Coverage for assistance with activities of daily living (ADLs) like bathing, dressing, and eating.
- Flexibility to choose care settings (e.g., at home or in a facility).
- Reimbursement for covered services after an elimination period, usually 30–90 days.
- Policy limits on daily or monthly payouts and total lifetime benefits.
- Premiums based on age, health, benefit amount, and optional features such as inflation protection.
Traditional health insurance and Medicare generally do not cover these types of long-term care. Medicaid may provide coverage, but only for those who meet strict income and asset requirements.
The 6 Keys to Financial Freedom
Welcome to our Financial Education Series. We have a mission to relay basic financial information our community can implement. Tangible keys and tools for your financial health and freedom. Our…