Long-Term Care (LTC) Insurance

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DEFINITION of 'Long-Term Care (LTC) Insurance'

Coverage that provides nursing-home care, home-health care, personal or adult day care for individuals above the age of 65 or with a chronic or disabling condition that needs constant supervision. LTC insurance offers more flexibility and options than many public assistance programs.

BREAKING DOWN 'Long-Term Care (LTC) Insurance'

Long-term care is usually very expensive, which is why most people need insurance. For example, on average, nursing facilities providing skilled care charge $150 to $300 per day -more than $80,000 a year or more. Even custodial home care at three visits per week can cost more than $9,000 a year. Most LTC insurance policies will cover only a specific dollar amount for each day you spend in a nursing facility or for each home-care visit. Thus, when considering an LTC insurance policy, read the policies carefully and compare the benefits to determine which policy will best meet your own needs.

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RELATED FAQS
  1. 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 Full 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 ... Read Full 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 Full Answer >>
  4. What are activities of daily living (ADL)?

    Activities of daily living (ADL) refer to daily activities that individuals normally do, unassisted, to take care of themselves. ... Read Full Answer >>
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