Long-term care insurance

(redirected from Long Term Care Riders)

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 ?
These potential tax free benefits depend on the design of the policy which may or may not include certain long term care riders.
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.
Nimble carriers will be considering earlier support plans by offering annuity base plan products with guaranteed purchase options for long term care riders in the future.
Also known as asset-based long term care insurance or linked benefit products, combination products began as life insurance with long term care riders.
Prospects for GMIB annuity sales remain strong, and sales opportunities arising from the Pension Protection Act's favorable treatment of long term care riders promise to accelerate them further.
Thankfully, combo products, such as annuities and life policies with long term care riders, can save the day.
Some variable universal life and term life policies may offer long term care riders, as well.
A case in point is the addition of long term care riders to fixed annuities.
Add the fact that the Pension Protection Act of 2006 endorses long term care riders on annuities, and the real excitement next year will be in the annuity arena as it relates to income distribution planning.
Long term care riders provide a benefit for anyone confined to a long term care facility or who is receiving home health care.

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