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 could include long-term care riders, accelerated benefit riders or waiver of premium riders.
One of the most competitive and flexible long-term care riders in the industry, AXA's Long-Term Care ServicesSM Rider requires no receipts; has features that may help their employees keep pace with rising long-term care costs; doesn't allow the policy to lapse while claims are being paid; and allows the employee's condition to be temporary.
Market pressures and resulting innovation led to the development of hybrid life products, or life insurance policies with CI riders or long-term care riders.
1, 2010, funds used for qualified LTC premiums no longer create a taxable event for policyholders with any of the four forms of combination products: life policies with an acceleration of the death benefit, those with chronic illness riders or long-term care riders, life policies with embedded LTC riders with an extension of benefit rider, and annuity/long-term care products.
Triggers for long-term care riders are less restrictive in that they do not contain the expectation of permanence clause.
1 objection is the premium for life insurance with long-term care riders.
Risk distribution was found because that risk would be spread among the many annuity contracts that would contain the long-term care riders.
We're seeing more clients looking at single-premium Universal Life options now," he says, attracted by return-of-premium and long-term care riders, plus other features that provide flexibility and access to contract dollars.
Unlike most stand-alone long-term care policies, the long-term care riders on NL LifeCare products have premiums which are guaranteed level for the life of the contract.
The same is true for certain life insurance policies, particularly those with long-term care riders.
For life insurance, it's no longer just a matter of the risk of dying too soon, but also living too long, which is why a number of insurers have introduced chronic illness and long-term care riders.

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