Long Term Care

Long Term Care (LTC) is a type of care for chronic conditions not covered by health insurance; it is meant to support an individual who requires assistance with activities of daily living over an extended period of time.  LTC insurance offers coverage that provides skilled nursing, intermediate care, or custodial care for a patient in a nursing facility or his or her residence following an injury or from bad health.

Suitable for:

  • Individuals who want to protect their savings from unexpected illness and are relatively in good health
Reasons for Long Term Care
  • Preserve Wealth  Healthcare costs are rising and a chronic illness could wipe out a lifetime of financial planning for your client
  • Tax Benefits Benefits paid out to Long Term Care policies are tax free
  • Medicare is not enough – Medicare will only provide a maximum benefit of 100 days nursing home care, for which the recipient is only eligible after 3 days of consecutive hospital stay.  The first 20 days are fully covered by Medicare, and the remaining 80 days will require the client to pay any costs over $133/day* (2009). All Medicare benefits end after 100 days.  A patient with chronic long-term care needs will probably require some form of LTC beyond the 100-day period. 

*Set for inflation annually. 

Resources

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