Long Term Care (LTC)

Unlike traditional health insurance, Long Term Care insurance is designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home, a community organization, or other facility.

Long Term Care services include medical and non-medical care for people with a chronic illness or disability. and helps meet health or personal needs. Most Long Term Care services assist people with Activities of Daily Living, such as dressingbathing, and using the bathroom. Long Term Care can be provided at home, in the community, or in a facility.

Long Term Care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating.  You can select a range of care options and benefits that allow you to get the services you need, where you need them.

The cost of a Long Term Care policy is based on:

  • Your age when you buy the policy
  • Maximum amount per day the policy will pay
  • Maximum # of days/years the policy will pay
  • Lifetime maximum amount policy will pay = Maximum amount per day X the # of days 
  • Any optional benefits you choose, e.g. benefits that increase with inflation

Additionally, if you currently are in poor health, or already receiving Long Term Care services, you may not qualify for long-term care insurance, since most individual policies require medical underwriting. In some cases, however, you may be able to buy a limited amount of coverage, or coverage at a higher “non-standard” rate.