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 ?
At that time, the prominent offerings in our marketplace were long-term care riders filed under health insurance regulations.
Country Life recently updated its whole life products, including long-term care riders and updated premium levels aimed to improve long-term policyholder value, new level-term plans with return of premium riders and a new single premium whole life product.
UL insurance policies and annuities with long-term care riders are available in the market, but these are newer, expensive products.
John Hancock, which has a long, successful history of providing long-term care riders on its fully underwritten products, is an industry leader in both the life insurance and long-term care insurance markets.
Long-term care riders on life insurance and annuities offer an alternative linked solution:
The definition is ambiguous and could be interpreted to include life insurance policies, annuities and long-term care riders, according to AHIA and NALU.
Some annuity products also have long-term care riders available and should be considered as a planning option; however, they do not have the same tax advantages at death as life products.
Fundamentally, a combo product is a life or annuity policy with long-term care riders.
Continued Growth of Indexed Universal Life Plans and Popularity of Chronic Illness and Long-Term Care Riders are also cited
Long-term care riders are generally available on permanent life insurance contracts, which generally offer the following:

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