Long-term care insurance


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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 ?
Most people wait until their 60s or 70s to apply for long term care insurance a point in their life when their health is an issue," explains Jesse Slome, director of the American Association for Long-Term Care Insurance and the National Advisory Center for Short Term Care Information.
LOS ANGELES, March 23, 2015 /PRNewswire-USNewswire/ -- A number of newly introduced long-term care insurance policies offer features and options that provide significant benefit and potential cost savings for consumers.
Additionally, referencing MacDonald's second statement, "senior disability income" has existed for quite a number of years within the long-term-care insurance industry and is an excellent choice for all consumers considering long-term care insurance.
As you may know, Consumer Reports had an article on long-term care insurance, and I was disappointed that they suggested if one's income was less than $200,000, one shouldn't get long-term care insurance, as Medicaid will eventually cover one's long-term care expenses.
Luckily for him, Sarah Gray was a pioneer in long-term care insurance and had purchased a policy 10 years earlier.
The ElderCare Task Force would like to remind CPAs that many long-term care insurance policies qualify as a deductible medical expense.
He supports a tax credit for caregivers, development of the long-term care insurance market, and Clinton's plan to extend prescription drug coverage under Medicare.
On May 6, 1997, the IRS issued Notice 97-31, which provided interim guidance on qualified long-term care insurance contracts and qualified long-term care services.
As mentioned earlier, long-term care insurance generally is too expensive for the benefits provided--annual premiums in the thousands are not uncommon.
Prudential's Group Insurance Business Unit Rates Among Industry's Best for Group Long-Term Care Insurance Marketing Communications
Discounted E&O insurance is a benefit extended to members of the American Association for Long-Term Care Insurance and the American Association for Critical Illness Insurance.
9, 2014 /PRNewswire-USNewswire/ -- The nation's long-term care insurance companies paid a record $7.

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