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 or chronically ill patients. These services include social, medical/nursing, and community services. They often require assisting the patient or patients in performing day-to-day tasks like dressing, bathing and eating. Long-term care can be provided for anybody and can be performed in a nursing home, in the individual's residence or in assisted living centers, and there are a variety of ways to pay for long term care, including personal savings, long-term care insurance, viatical settlement and Programs for All-inclusive Care for the Elderly (PACE). (Learn about long term care insurance in our article, Long-Term Care Insurance: Who Needs It?)

Viatical settlement refers to selling life insurance to a third party. When selling life insurance to a third party, you have to sell it at less than the face value. For example, if the policy's face value if $500,000, you will receive an amount less than that at a discount to the face value. With viatical settlement, the third party that purchases the policy is entitled to full death benefits. PACE is a benefit that offers a comprehensive care and incorporates Medicare and Medicaid financing. PACE is available only in states that have chosen to offer it under Medicaid. Every state has different standards and eligibility requirements for participants. It is important to note that PACE requires a monthly premium from enrolled participants.

This question was answered by Chizoba Morah

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