Long term care insurance (LTC or LTCI) is an insurance product sold in the United States, United Kingdom and Canada that helps provide for the cost of long-term care beyond a predetermined period. This kind of insurance covers care generally not covered by health insurance, Medicare, or Medicaid.
Unlike traditional life insurance, this long term care insurance is designed for long term services and supports including personal and custodial care in such settings as home, public facilities, organizations, and other facilities. Those who need long-term care are generally not sick in the traditional sense, yet, those who are unable to perform such basic activities of daily living (ADLs) as dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking.
This long term care insurance is based on the following aspects:
1. Age
Age determines the premium you will have to pay. The older you are, the higher premium you have to pay.
2. The amount of cover
This is set for the maximum amount of cover of a policy you will pay per pay.
3. The amount of days cover
This is about the maximum of days (years) that a policy will pay you.
4. The amount of day times the number of days
This is about the amount of per day times the number of days determined the lifetime maximum amount that a policy will pay you.
5. Optional benefits
The optional benefits you may choose, like benefits that increase along with inflation.
For this kind of insurance, you may not qualify for the long term insurance if you are in poor health condition. But, in same case, you may buy a limited amount of coverage or a non standard coverage.
