Long Term Care
A Long Term Care policy protects you if you need to be in a skilled nursing center
( nursing home). LTC coverage is available to individuals, employee groups and
associations. Also, a few life insurance policies and annuities are available with
LTC riders. Generally the requirements are not as rigid as a LTC policy.
LTC is probably the most misunderstood policy. Most people, including agents, do
not understand the LTC policy because of the insurance jargon
and the numerous additional coverages that are available. Since all can not
be explained on this page, the basics of the policy are:
Benefit Period - The total amount of days covered by the policy. It may be
described in years.
Elimination Period - The number of days BEFORE coverage starts. It is usually in
30 day increments.
Daily Limit - The amount of coverage per day. The coverage starts at $100 per day
to $800. Remember costs are increasing annually so be realistic.
Home Health Care - This coverage allows you to stay at home. The cost and
extent of this coverage varies per Company. It is wise to examine this coverage
very carefully because we all would prefer to stay in our own home.
Waiver of Premium - If you have to go to a nursing facility, you do not have to
pay your monthly premium. Payments will resume when you leave the facility.
Assisted Living Facility - A facility for those that can not or do not want to
maintain a home or complete daily activities. Usually food service and other
activities are included.
The Long Term Care Partnership allows the insured (you) to keep an amount of assets equal
to the face value of the policy. That is you do NOT have to dispose of everything you own to
get Medicaid. Remember each State has it own requirements that must be part of the policy
to qualify for the LTC Partnership.
There are several companies that have LTC riders on life insurance policies and one company
developed an annuity that doubles it value for LTC covverage. (A $100,00 annuity will have
$200,000 in LTC coverage).
This page should have explained the basics of LTC. Again, not all coverages
can be explained on one page. If you have any questions contact Robert.