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. Is short term care insurance a good idea?

    I have talked with an insurance agent and been approved for short term care insurance. I am 65 and in good health. I just ... 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 >>
  6. Which insurance policies do I really need?

    Your needs for insurance depend on your situation and can't be generalized for everyone, but there are a lot of options available. ... Read Answer >>
Related Articles
  1. Personal Finance

    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

    Does the Middle-Class Need LTC Insurance?

    Long-term care insurance is as expensive as it is necessary for many people, but is it right for all financial advisor clients?
  3. Personal Finance

    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. Retirement

    What Long-Term Care Insurance Protects Against

    Because long-term care can be so expensive, not to mention labor-intensive, long-term care insurance exists to protect against exhausting your personal assets or burdening your loved ones. In ...
  5. Personal Finance

    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.
  6. 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.
  7. Financial Advisor

    Long-Term Care Policies: Why They're Worth It

    Long-term care insurance can be a godsend for those who need it for an extended period of time. Read on for more about this long-term care option.
  8. Retirement

    How to Choose the Best Long-Term Care Insurance

    Here's how to find and select a policy that provides the best coverage for you.
  9. Personal Finance

    How to Defray Long-Term Care Expenses

    Here's a handful of options on what you can do to defray long-term care expenses.
  10. Retirement

    Your Complete Guide to Long-Term Care Insurance

    Learn everything you need to know about this critical insurance: what it is, what it covers, when to buy it, the cost, which companies offer it and more.
RELATED TERMS
  1. Long-Term Care (LTC) Insurance

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

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

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

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

    A temporary document issued by an insurance company that provides ...
  6. Group-Home Care

    Care given to a group of people with similar disabilities within ...
Trading Center