Long-Term Care Insurance
Long-Term Care – What is it?
Long-term care insurance (often called LTC) is a fairly new type of insurance product. It was brought into being because of the growing number of elderly people who are living with poor health and the inability to remain independent. The idea is relatively similar to other insurance. The insured pays a premium and receives specified benefits in the event that they need long-term care, as defined by the insurance policy.
Most LTC policies pay a certain dollar amount for each day the insured receives the type of care that the policy covers, regardless of the actual cost of the care. If the daily allowable amount for care is $115 and the cost facility charges are $110, the policy will pay out the entire $115.
Different Coverage
Usually the need for LTC arises when physical or mental conditions impair a person's ability to perform the basic activities of everyday living – such as eating, bathing, dressing, toileting, and walking. These are the types of risks that long-term care insurance is designed to protect against. There are three subcategories of LTC:
1) Skilled nursing care, which is continuous 24-hour care provided by a licensed medical professional under the direct supervision of a physician. This type of care is usually administered in nursing homes.
2) Intermediate nursing care is administered by registered nurses and nurse's aides under supervision of a physician. This type of care is provided in nursing homes as well to individuals that require daily, but not constant supervision.
3) Custodial care provides assistance in meeting daily needs, such as bathing, dressing, moving out of bed, etc. This kind of care does not require specific medical training, but must be given under doctor's orders.
Get an insurance quoteFREE & ONLINE Read Supplemental Read Disability