What is Long-Term Care Insurance?

Long-term care can also be called personal care, custodial care, or non-skilled care. This type of care includes the services known as activities of daily living (ADL), which is help with:

  • Bathing,
  • Dressing,
  • Eating,
  • Transferring (getting in and out of bed or chair)
  • Continence, and
  • Toileting.

Most types of health insurance—such as medical expense, Medicare, Medigap, and Advantage Plans—will pay when an insured is receiving rehabilitation and recovering due to an accident, illness, or surgery.  However, they do not pay for long-term care that is expected to be needed for the rest of the insured’s life.

A long-term care (LTC) insurance policy is a unique policy that will pay the insured a daily, weekly, or monthly amount (up to a pre-selected limit) for services to assist them with activities of daily living (ADL) as described above.

The cost of an LTC insurance policy is based on factors such as:

  • The age of the insured when the policy was first purchased;
  • The length of the elimination (waiting) period;
  • The dollar amount the policy will pay for each day, week, or month the insured is receiving care;
  • The maximum number of years the policy will pay a benefit; and
  • The optional features purchased with the policy.