Long-term care insurance (LTC or LTCI), is an insurance policy used to cover care such as custodial care, that is not covered by health insurance, Medicare, or Medicaid.
Individuals who require long-term care are unable to perform the basic activities of daily living (ADLs) such as dressing, eating, bathing, toileting, continence, transferring and walking.
Long-term care insurance generally covers assisted living, adult daycare, home care, hospice care, respite care, nursing home and Alzheimer’s facilities. Long-term care insurance can pay for home care, often from the first day it is necessary. It will pay for a live-in or visiting caregiver, companion, housekeeper, therapist or private duty nurse up to seven days a week, 24 hours a day (up to the policy benefit maximum).
Medicaid provides medically necessary services for people with limited resources who need nursing home care but are able to stay at home with special community care services. Long-term care provided in a home setting or for assisted living is not covered by Medicaid. Most people who need long-term care often prefer care in the home or in a private room in an assisted living facility.