What is long-term care insurance?

By Chizoba Morah AAA
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. How do I become an underwriter?

    Learn about the education, training and certification required to become an insurance underwriter as well as the important ...
  2. What country spends the most on healthcare?

    Find out which countries spend the most on health care, and understand some different methods for measuring these rankings ...
  3. What types of regulations are in place regarding fringe benefits?

    Read about the types of regulations that impact employee fringe benefits in the United States, including benefits mandated ...
  4. What is a longevity annuity?

    Understand all the characteristics of a longevity annuity contract, the purpose of a longevity annuity and what type of investor ...
RELATED TERMS
  1. Automatic Premium Loan

    An insurance policy provision that allows the insurer to deduct ...
  2. Blanket Medical Expense

    An insurance policy which provides coverage for all medical expenses ...
  3. Cestui Que Vie

    The individual who is the beneficiary of a trust or insurance ...
  4. Aircraft Insurance

    Insurance that provides liability and property coverage of aircraft.
  5. Boat Owners' Insurance

    An insurance policy that provides coverage for individuals who ...
  6. Watercraft Insurance

    Insurance policies that provide coverage for boats and personal ...

You May Also Like

Related Articles
  1. Entrepreneurship

    Want To Sell Life Insurance? Read This ...

  2. Investing Basics

    Passing Boomers Will Leave A Big Economic ...

  3. Stock Analysis

    The 5 Largest U.S. Product Liability ...

  4. Stock Analysis

    Obamacare Is Coming, Ready Or Not

  5. Stock Analysis

    Genworth Looking At A Lot Of Heavy Lifting

Trading Center