Long Term Insurance

What is Long Term Care Insurance?

Long Term Care (LTC) insurance is a special type of insurance offered to cover the expenses of any care that needs to be provided to the policy holder for a long period of time. Essentially, it is insurance that helps to cover your daily costs if you are being taken care of by a home, organization, or anyone else due to medical reasons. Many workplaces have made it a rule to offer their employees LTC insurance, sometimes as no cost to the employee, as part of their benefits package. If you are unable to work due to a long term illness, this insurance will help pay what your regular insurance will not.

Who Is It For and How Does It Work?

LTC insurance works just like any other insurance. You must purchase the policy ahead of time, and when you are unable to care for yourself or need long term medical care, the insurance will kick in and a certain amount of your daily expenses will be paid for. This insurance is meant to be for the policyholder (the person who pays the premiums), but some policies may allow it to cover other dependents such as children under 26 years of age or elderly parents.

What Types of Long Term Insurance Coverages Are There?

Most policies are very similar. The general coverages include any care that is not covered by health insurance, Medicare, or Medicaid, up to a specified amount. Benefits include taking care of out-of-pocket expenses for hospice care, hospital stays, nursing homes, adult daycare, and many other long term care facilities and services.

So, What Are The Major Benefits of This Insurance?

LTC insurance is a special type of care insurance that offers the policyholder a chance for help on out-of-pocket expenses. It allows you to avoid having to ask relatives for money, which is often the case as we all get older and have to move into care facilities such as nursing homes and assisted living facilities. LTC insurance premiums paid can also be deducted from income taxes for the year, and benefits paid may even be excluded from taxable income.