What Is Long-Term Care (LTC) Insurance?

Long-term care (LTC) insurance is coverage that provides nursing-home care, home-health care, and personal or adult daycare for individuals age 65 or older or with a chronic or disabling condition that needs constant supervision.

Key Takeaways
  • Long-term care insurance usually covers all or part of assisted living facilities and in-home care for people 65 or older or with a chronic condition that needs constant care.
  • It is private insurance available to anyone who can afford to pay for it.

Understanding Long-Term Care (LTC) Insurance

Many people are unable to rely on children or family members for support and buy long-term care insurance to help cover out-of-pocket expenses. Otherwise, long-term care expenses would quickly deplete the savings of an individual and/or their family.long term care

While the costs of long-term care differ by region, it is usually very expensive.

Long-term care insurance usually covers all or part of assisted living facilities and in-home care. Full home care coverage is an option with long-term care insurance. It will cover expenses for a visiting or live-in caregiver, companion, housekeeper, therapist or private-duty nurse up to seven days a week, 24 hours per day, up to the policy benefit maximum.

Most long-term care policies will cover only a specific dollar amount for each day you spend in a nursing facility or for each home-care visit. So when considering a policy, read the fine print carefully and compare the benefits to determine which policy will best meet your own needs.

Special Considerations

Many experts suggest shopping for long-term care insurance between the ages of 45 and 55, as part of an overall retirement plan to protect assets from the high costs and burdens of extended healthcare. Long-term care insurance is also cheaper if you buy it younger.

Disclaimer: Aviso Insurance Inc. offers financial planning, life insurance and investments to members of credit unions and their communities.  Your insurance contract will provide details of the coverage available under the plan you choose.  Restrictions may apply.

The information contained on this website was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is provided as a general source of information and should not be considered personal advice.  Please speak to your Aviso Insurance Representative or personal financial representative before making any financial planning decision or implementing any strategy.

SOURCE: https://www.investopedia.com