Long-Term Care (LTC) Insurance

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.

RELATED TERMS
  1. Custodial Care

    Non-medical care that helps individuals with his or her activities ...
  2. Health Insurance

    A type of insurance coverage that pays for medical and surgical ...
  3. Group-Home Care

    Care given to a group of people with similar disabilities within ...
  4. Long-Term Care Ombudsman

    A government official who oversees nursing homes and assisted ...
  5. Accountable Care Organizations

    Healthcare providers that take a group approach to coordinating ...
  6. Assisted Living

    A type of housing that combines healthcare and help with activities ...
Related Articles
  1. 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.
  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. 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.
  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. 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.
  6. 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.
  7. 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?
  8. 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.
  9. Financial Advisor

    Can Long Term Care Insurance Be Affordable?

    The cost of managed care and insurance covering it will only become more expensive. Here's how to help your clients formulate a plan.
  10. Trading

    Long-Term Care: More Than Just A Nursing Home

    Learn what you can do now to keep your options open in the future.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. What is long-term care insurance?

    Long-term care insurance is an insurance policy that that helps a patient pay for long-term care. The policy usually covers ... Read Answer >>
  5. Should I continue my LTC insurance?

    I am 66, semi-retired, widowed, living on my teacher's pension and my husband's SS - trying to hold out until age ... Read Answer >>
  6. What alternatives to Long Term Care Insurance are there besides self-insuring?

    Both me and my spouse have chronic health issues (hepatitis C and lupus) that would cause LTC insurance to b... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center