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 ?
But in either case, you might be able to benefit from a long-term care insurance policy, or possibly a long-term care rider attached to a life insurance policy.
It is based on formulas and employee classifications, instead of lengthy medical questionnaires and exams, and is now able to offer the only true long-term care rider in a Guaranteed Issue Program.
Protection UL, its bestselling product since 2011, is a universal life policy that can include a long-term care rider.
Less well known and potentially more responsive to this particular estate planning need are life insurance policies that allow the insured "to collect now, die later." Developed in the last two years and currently offered by less than a dozen insurance carriers, (5) these policies are technically life insurance policies with an inexpensive long-term care rider that pre-pays the life insurance death benefit in monthly installments at the time the insured requires long-term care.
Eleven percent said they d purchase a long-term care rider on a life insurance policy; 8 percent said they d have family members provide their care and 7 percent said they d spend down assets to qualify for Medicaid and enter a Medicaid-approved facility.
To further sweeten the compensation pot for top employees, he notes, a company might offer a hybrid form of life insurance policy that comes with some kind of long-term care rider or feature that provides the policyholder with tax-free cash to cover long-term care expenses.
We've all seen advertising that sort of goes like this: "If you think LTCI is too expensive, then you should be looking at this life insurance policy with a long-term care rider!"
I am usually able to show them a solution by exchanging the current policy to a new one with the long-term care rider, assuming they are able to be approved health-wise.
The IRS recently ruled that benefits received pursuant to a long-term care rider attached to a single premium deterred fixed annuity may be excluded from gross income because the rider can be treated as an insurance contract under IRC Section 7702B.
Long-term care rider: Pays a monthly benefit to clients who receive home care or care in a nursing home--a good solution for clients who don't think they need long-term care insurance.
It's purchased the same way as a universal life policy, and it includes a long-term care rider provision and a death benefit if you end up not needing that long-term care.
Annuity with long-term care rider. In a private letter ruling, the Service analyzed the federal income tax treatment of a long-term care insurance rider to be offered with certain annuity contracts by an insurance company with respect to taxable years beginning after December 31, 2009.

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