A:

Long-term care insurance is an insurance policy that that helps a patient pay for long-term care. The policy usually covers activities like bathing and dressing, rehabilitation, nursing facilities and other care-oriented activities for individuals with 'cognitive impairment' diseases like Alzheimer's. Long-term care insurance does not cover the cost of "cure-oriented" items or activities like medication, surgery, etc.

Unlike Long-term care insurance, Medicare and Medicaid generally do not cover custodial care, except for medically necessary services. To determine whether long term care insurance is needed, individuals are often asked to assess their finances and determine whether they can comfortably pay out of pocket for four years of long-term care.

It is generally best to buy long-term care insurance before the age of 60 for several reasons. Firstly, the younger you are the lower your premiums and chance of rejection will be. Another reason for getting long-term care insurance early is that, barring unexpected illness or accidents, there is a lower probability of getting preexisting conditions or falling seriously ill, factors that increase the likelihood of being denied access to the policy. In other words, the middle-age years are the period when there is the highest probability to be eligible for a policy at low premium costs. (To learn more, take a look at A New Approach To Long-Term Care Insurance.)

This question was answered by Chizoba Morah

RELATED FAQS
  1. What is a common strategy traders implement when using the Stochastic Oscillator?

    Most long-term care insurers require the loss of two activities of daily living (ADLs) to receive benefits. The six ADLs ... Read Full Answer >>
  2. Am I losing the right to collect spousal Social Security benefits before I collect ...

    The short answer is yes, if you haven't reached age 62 by December 31, 2015. The Bipartisan Budget Act of 2015 disrupted ... Read Full Answer >>
  3. What is the maximum I can receive from my Social Security retirement benefit?

    The maximum monthly Social Security benefit payment for a person retiring in 2016 at full retirement age is $2,639. However, ... Read Full Answer >>
  4. Are target-date retirement funds good investments?

    The main benefit of target-date retirement funds is convenience. If you really don't want to bother with your retirement ... Read Full Answer >>
  5. Where else can I save for retirement after I max out my Roth IRA?

    With uncertainty about the sustainability of Social Security benefits for future retirees, a lot of responsibility for saving ... Read Full Answer >>
  6. Does dental insurance cover implants?

    Dental implants have become a widely used procedure in dentistry. Despite their popularity, however, they tend to not be ... Read Full Answer >>
Related Articles
  1. Retirement

    Is Your Health Insurance Enough For Retirement?

    Learn what to expect to pay for health insurance in retirement, what is covered through Medicare and what the Affordable Care Act means for retirees.
  2. Budgeting

    The Honest Company Bundles Review: Are They Worth It?

    Learn more about The Honest Company and its bundle subscription services, which deliver discounted diapers, formula and other baby products to your doorstep.
  3. Retirement

    Early Out: A Realistic Plan to Retire Younger

    If you want to retire ahead of schedule, it'll take some extra planning.
  4. Retirement

    Smart Ways to Tap Your Retirement Portfolio

    A rundown of strategies, from what to liquidate first to how much to withdraw, along with their tax consquences.
  5. Budgeting

    5 Alternatives to Traditional Health Insurance

    Discover five of the most popular alternatives to traditional health insurance plans, alternatives that are increasingly popular as health insurance costs rise.
  6. Retirement

    Is it Safe for Retirees to Invest in Technology?

    Tech stocks are volatile creatures, but there are ways even risk-adverse retirees can reap rewards from them. Here are some strategies.
  7. Retirement

    Roth IRAs Tutorial

    This comprehensive guide goes through what a Roth IRA is and how to set one up, contribute to it and withdraw from it.
  8. Retirement

    Retirees: How to Survive When Interest Rates Drop

    Low interest rates are a portfolio killer if you're living off of investment income. Some strategies for dealing.
  9. Insurance

    Beware the Sneaky Math of Universal Life Insurance

    Universal life insurance's cash value can be a cash cow – if there's any left. Read on to see if it'll work as an income source after you've retired.
  10. Personal Finance

    Zika Virus: Latest Advice on Staying Safe

    Zika has hit the U.S. Here’s the most recent update on what’s known about the virus, how it spreads, who’s at highest risk and how to avoid it.
RELATED TERMS
  1. Limited Purpose Flexible Spending Arrangement (LPFSA)

    An employee benefit, used with a Health Savings Account, that ...
  2. PLUS Loan

    A low-cost student loan offered to parents of students currently ...
  3. High-Deductible Health Plan - HDHP

    A health insurance plan with a high minimum deductible that that ...
  4. Crowding Out Effect

    An economic theory stipulating that rises in public sector spending ...
  5. Comprehensive Glass Policy

    An insurance policy that covers glass that has been broken or ...
  6. Qualified Longevity Annuity Contract

    A Qualified Longevity Annuity Contract (QLAC) is a deferred annuity ...
Trading Center