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. Will Medicare pay for long-term costs?

    Long-term care refers to a variety of care services (medical and non-medical) that helps meet the needs of people who have ... Read Answer >>
  2. When is the best time to purchase long-term care insurance?

    Long-term care insurance (LTCI) covers the risk that individuals may need medical and custodial care, either at home or in ... Read Answer >>
  3. What is long-term care?

    Long-term care refers to a collection of services that are intended to meet the medical and non-medical needs of disabled ... Read Answer >>
  4. Why would you want a monthly benefit versus a daily benefit?

    An insurance benefit is the amount of money paid to or on behalf of the policyholder. Depending on what kind of insurance ... Read Answer >>
  5. What are some examples of industries that practice price discrimination?

    Understand the various types of insurance coverage offered in the insurance marketplace, and learn why each policy should ... Read Answer >>
Related Articles
  1. Insurance

    Long-Term Care Insurance: Who Needs It?

    No one is immune to the possibility of one day needing long-term care - and the costs can deplete a life savings.
  2. Financial Advisor

    Long-Term Care: How and Why You Should Plan for It

    The likelihood of needing long-term care is higher than most people realize. Here are some ways to plan for it.
  3. Insurance

    How To Buy Long-Term Care Insurance Cheaply

    Consumers looking for long-term care insurance shouldn't have to pay full price. Despite the sometimes-hefty costs, there are ways to save on premiums.
  4. Insurance

    Long-Term Care Insurance: What to Consider

    Long-term care may be a wild card in your financial plan, but at the very least, it should be discussed with your financial advisor.
  5. Insurance

    The Good News About Long-Term Care

    Two options have emerged that allow long-term care policyholders to gain control over premium increases.
  6. Financial Advisor

    The 4 Best Alternatives to Long-Term Care Insurance

    Understand what long-term care insurance is and the types of people who need this coverage. Learn about four alternatives to long-term care insurance.
  7. Financial Advisor

    Advising FAs: Explaining Long-term Care Insurance to Clients

    As our life spans are extended, our family structures change and medical care improves, the need for long-term care (LTC) will continue to increase.
  8. Insurance

    What's Killing Long-Term Care Policies?

    The long-term care insurance industry has fallen on hard times due to these factors.
  9. Financial Advisor

    Taking The Surprise Out Of Long-Term Care

    Don't be caught unprepared - find out what to look for in LTC insurance policies.
RELATED TERMS
  1. Health Insurance

    A type of insurance coverage that pays for medical and surgical ...
  2. Long-Term Care (LTC) Insurance

    Coverage that provides nursing-home care, home-health care, personal ...
  3. Custodial Care

    Non-medical care that helps individuals with his or her activities ...
  4. Personal Lines Insurance

    Property and casualty insurance products for individuals that ...
  5. Accountable Care Organizations

    Healthcare providers that take a group approach to coordinating ...
  6. Cover Note

    A temporary document issued by an insurance company that provides ...
Hot Definitions
  1. Co-pay

    A type of insurance policy where the insured pays a specified amount of out-of-pocket expenses for health-care services such ...
  2. Protectionism

    Government actions and policies that restrict or restrain international trade, often done with the intent of protecting local ...
  3. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  4. Demonetization

    Demonetization is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a ...
  5. Investment

    An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic ...
  6. Redlining

    The unethical practice whereby financial institutions make it extremely difficult or impossible for residents of poor inner-city ...
Trading Center