Long-term care insurance

(redirected from Long Term Care Rider)

Long-Term Care Insurance

Insurance that is purchased against the possibility that the beneficiary will require long-term medical care for a debilitating but non-life threatening condition. For example, one may require long-term care if one is involved in a car accident or has a non-terminal disease that does not allow the sufferer to live independently. Long-term care insurance is designed to pay for at least some of the medical expenses associated with this. These policies provide a per diem or monthly allowance for expenses, as well as an elimination period, a period of time after the illness is diagnosed or the accident occurs, but before the insurer begins coverage. Policies with a higher per diem and shorter elimination period come with higher premiums.

Long-term care insurance.

Long-term care insurance is a policy designed to cover at least some of your expenses if you have a chronic but not life-threatening illness, long-term disability, or you are unable to live independently because you can't perform a number of the activities of daily living.

Those activities typically include bathing, dressing, feeding yourself, taking medication, using the bathroom, and being able to move from a sitting to a standing position. Most contracts also cover cognitive impairments, such as Alzheimer's disease.

Under the terms of most long-term care contracts, you can be cared for in a nursing home or at home. The insurance pays for custodial rather than skilled care, which must be provided by licensed professionals. Skilled care is covered in part by Medicare and Medigap.

Every policy provides a specific daily or monthly benefit for up to a predetermined benefit period. Each policy also has an elimination period, which lasts from the day you become eligible until the day the insurer begins to pay. You generally can choose the benefit, benefit period, and elimination period that makes the most sense to you and that you can afford.

References in periodicals archive ?
Additional riders available Long Term Care Rider, Restoration of
A long term care rider can be added to the life insurance coverage being purchased.
For example, while the average premium on a standalone policy may run $2,200 per year for consumers in their early 60s, a long term care rider on an annuity could cost less than $1,000 per year.
The long term care rider may be known by different names in different states, may not be available in every state and has an additional charge associated with it.
Should the need arise, the long term care rider accelerates the life insurance death benefit, helping to defray the burden of long term care expenses; the death benefit is then reduced by the amount accelerated.
With a long term care rider, a percentage of the life policy benefit can be paid out monthly, tax-free, if the individual is living in a long term care or assisted living facility.
Have you looked at a fixed annuity with a long term care rider, where, for pennies on the dollar, you can protect your assets and income in the event of a critical illness?
An optional Long Term Care Rider (LTC), on policies of $250,000 or greater, covering expenses for long term care with monthly benefits of up to $20,000, (payable for up to 50 months) depending upon face amount.
If you qualify, private payment options such as long term care insurance, linked benefits products or long term care riders on other insurance can help fill the gap between public assistance and the high cost of long term care services.
While guaranteed lifetime withdrawal benefits and income riders are expected to dominate in 2011, Laura Hahn, managing director of annuities at The Marketing Alliance, feels that long term care riders aren't getting the attention they deserve--possibly because they're still relatively new to the marketplace.
I only sold annuities with long term care riders to those folks that were not healthy enough to qualify for coverage with my pure long term care carriers.

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