Long Term Care Insurance

What is Long Term Care Insurance?

Unlike traditional health insurance, long-term care insurance is designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home private duty care) or facility (assisted living, residential care home, or skilled nursing).

Long-term care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating. 

The cost of your long-term care policy is based on:

  • How old you are when you buy the policy
  • The maximum amount that a policy will pay per day
  • The maximum number of days (years) that a policy will pay
  • The maximum amount per day times the number of days determines the lifetime maximum amount that the policy will pay.
  • Any optional benefits you choose, such as benefits that increase with inflation

If you are in poor health or already receiving long-term care services, you may not qualify for long-term care insurance as most individual policies require medical underwriting. In some cases, you may be able to buy a limited amount of coverage, or coverage at a higher “non-standard” rate. You should carefully evaluate if the care you need will exceed this premium rate and consult a financial expert.

If your loved one has a long-term care policy, it is important to have it reviewed by a legal representative. The policies can vary greatly even within the same company, there have been many mergers of the companies that underwrite these policies. So, one Genworth policy does not necessarily have the same terms & conditions as another Genworth policy.

If you are considering purchasing one of these policies, please consult a financial expert that is knowledgeable about these type of policies to find the right one for your particular situation.