What is Long Term Care Insurance?

A Long Term Care Insurance policy will pay out benefits for care received at home, adult day care centers, assisted living facilities and nursing homes.

Long Term Care Is Not Medical Care 

Almost everyone believes the chances of ending up in a nursing home are remote. But please don’t confuse that with growing old and needing care. Different from medical care, Long Term Care assists a person with normal daily activities they can no longer manage. Whether your need is due to age, injury or disability, Long Term Care Insurance provides daily and/or monthly benefits to pay for the necessary care not generally covered by health insurance, Medicare or Medicaid. Long Term Care Insurance  allows you to pay an affordable premium to protect yourself in case of an unaffordable catastrophic event.

Benefits are triggered by the inability to perform two or more activities of daily living (ADLs): toileting, bathing, dressing, eating, transferring (getting from one point to another without falling) or continence. A cognitive impairment, which can include problems with memory, perception, problem solving and conceptualization, can also trigger benefits if it leads to a requirement for substantial assistance. Your own doctor is the one who certifies that care is needed. 

Preserve Your Lifestyle and Well-being With Long Term Care Insurance 

You may never need Long Term Care, but if you do and you’re unprepared, the consequences to your family and retirement portfolio can be catastrophic. Consider Long Term Care Insurance as a means to preserve your lifestyle, your estate and your family’s well-being.


When considering Long Term Care Insurance, it helps to think about consequences: 

If you live a long life and need care, what is your Long Term Care plan?

What funds have you allocated to pay for that Long Term Care plan?

What effect will Long Term Care have on your family and your retirement portfolio?


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11 Comments on "What is Long Term Care Insurance?"

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My husband and I are 68 yrs old. Where do we go to get this Long Term Care Insurance? How do we qualify? How much does it cost?

My husband and I applied a few years ago, he was 57 and I was 54. He had stints from a heart attack and they processed him but at the end rejected him. I had ovairan cancer, did chemo, got fibromyalgia and take more than 2-3 meds to treat the fibro. I am one of the fortunate few ovarian cancer survivors…its been 13 years. I was rejected on the spot because of the meds. I think they want you to apply when you are young and healthy so that they have more years to collect the premiums.

Any one that understands economics knows that businesses are in business to make a profit unlike the government who can spend then print money which causes inflation. This was due to the guy that thinks insurance companies are communism.

Where do I get this type of insurance at a price I can afford?

My wife and I own a Long Term Care policy. My premiums are very reasonable and the benefits will pay in excess of $150 per day if/when needed. The benefits increase each year by the rate of inflation and the premium increases not more than 4% in any year. I my need to use the benefits of this policy in the near future for my spouse and I can have peace of mind [and billfold] that we signed up for the policy. By the way, our policy covers in a facility or at home.

The individual who compared the long term insurance to Communism, does not have a clue as to Long Term Care or to Communism. If he had read Karl Marx and the Manifesto, he would have at least learned to spell his name correctly.

I care for a person in their 90s who is able to stay at home and get her care. I do not know what the premiums were, but they allot $100q/day for care. I do not think I would be able to afford this, however.

It is health care in name only. IT IS NOT HEALTH CARE. It is a way for a group to get very rich. When AARP gets 100 million dollars from the medicare supplement; there is some thing basically wrong. Do you know any poor insurance companies? They are license to steal. Fundamentally they accept money from lots of people and give it to those that have a need. Do they? If they do why do they have so much money left.
(Actually if you read Carl Marks; you will find that the above definition of insurance is the same as the definition of Communism.)


Orin: You don’t know what your are talking about. You ask if we have ever seen a “poor” insurance company. They exist, and from time to time the go out of business (bankrupt), just like banks. But the bigger question is, why would we want to buy insurance from a poor insurance company? Is that where you would purchase your insurance? Insurance is a pool of money that we can pay into so we can have access to that pool of money in the event we need it. Does it not stand to reason that a “poor” insurance company would not be a good way to insure risk? Furthermore, are we not better off if we actually do not have to use the insurance? One other thing, I think you need to re-read the Communist Manifesto, you have a fundimental misunderstanding of Marxism, beginning with the correct spelling of con-man… Read more »

You are correct. In fact, states have very stringent financial standards which insurance companies must meet with respect to reserves so they can actually pay claims. You would not want to write a policy with a company that is rated lower than A by AM Best as they may not be able to meet reserves is many claims are filed.

I had cancer in 2006. Now I can’t find a company to cover me for long term care insurance.The irony is, I had my paperwork filled out but missed the deadline in 2005. I forgot about the forms and everything else when my mom became ill and died.

I’d say to anyone who’s healthy, get it now, you never know.

I acquired a plan many years ago, 1980s, when the annual premium was reasonable. It contained an inflation provision so if I had to use it today (I’m 86) it would pay out over $200 per day. I feel that would provide home care pretty well and would protect my estate. My kids appreciate my planning and would pay the premium if I forget to pay. The company has increased the premium several times but I still consider it to be reasonable for it’s potential benefits.

Why are you still paying premiums? Both my sisters have plans that they paid premiums on for a certain number of years and now they’re finished paying any more premiums; one sister is 66 and one is 71.