What is long-term care?

By Chizoba Morah AAA
A:

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

RELATED FAQS

  1. How can I receive my Social Security benefits if I want to retire outside the U.S?

    Understand the requirements for receiving Social Security benefits while living outside the United States and how citizenship ...
  2. When am I eligible to receive Social Security benefits?

    Understand when you are eligible to begin collecting Social Security retirement benefits and how retiring at different ages ...
  3. What's the difference between a financial advisor and a financial planner?

    Seeking professional advice from a financial advisor may involve asking for financial help from a certified financial planner, ...
  4. How does my spousal Social Security benefit work?

    Understand the basics of spousal Social Security benefits, when you are eligible to apply, and how your age and employment ...
RELATED TERMS
  1. Case Management

    Planning, processing and monitoring the healthcare services given ...
  2. Level Death Benefit

    A life insurance payout that is the same whether the insured ...
  3. HIPAA Waiver of Authorization

    A legal document that allows an individual’s health information ...
  4. Medicare Doughnut Hole

    A range of total prescription drug spending in the Medicare Part ...
  5. To Fund

    A type of target-date retirement fund whose asset allocation ...
  6. Guaranteed Issue Life Insurance

    A type of financial-protection policy that provides cash to a ...
Related Articles
  1. If that's always been your dream, there actually are affordable ways to retire in France. Some regions to explore and some cautions to keep in mind.
    Retirement

    Can You Afford To Retire In France?

  2. A delightful climate, World Heritage sites and a low cost of living are just some of the reasons to retire to Ecuador. Here's more about what to expect.
    Retirement

    Why Retiree Expats Adore Ecuador

  3. The names sound similar – continuing care, assisted living – but retirement communities differ widely. How to tell them apart and what you'll need to pay.
    Retirement

    Don't Pick The Wrong Type Of Retirement ...

  4. Whether you're a saver or a financial advisor who want to give their clients a leg up, these 8 tips are essential for financial planning.
    Investing Basics

    8 Essential Tips For Retirement Saving

  5. The Medicare Part D donut hole can confound the best of us. Here's what financial advisors and their clients should know.
    Investing Basics

    'Donut Hole' Essentials For The Financial ...

Trading Center