Long Term Care

What is Long Term Care Insurance?

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.

The Benefits of Long Term Care Insurance

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).

Other benefits of long-term care insurance:

  • Long-term care insurance can be a more practical method of covering out-of-pocket expenses, especially since many people feel uncomfortable relying on their children or family members for support. The cost of providing these services without long-term care insurance may quickly deplete the savings of the individual and/or their family.
  • Long-term care premiums may be eligible for an income tax deduction. The amount depends on the age of the covered person. Benefits from long-term care policies are generally excluded from income.
  • Business deductions of premiums will vary based on the type of business. In most cases, corporations paying premiums for an employee are 100% deductible if not included in employee’s taxable income

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.

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