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Long Term Care Insurance

What Is Long Term Care Insurance and Do Employers Offer This Coverage?

Long term care coverage is designed to help cover the expenses of extended care that traditional health insurance, Medicaid and Medicare will not pay. This can include the costs of home health aides, assisted living and nursing home expenses. They are figured as an agreed upon daily rate. Depending on the insurance company that an employee signs up with, long term care options can be made available to all employees at a group rate.

Who Is Covered With a Long Term Care Policy?

The policy for long term care covers the individual specified in the paperwork. Additional policies can be created to cover a spouse, or they can initiate a policy on their own. They might have options through their own employer-sponsored health plan.

How Does Long Term Care Coverage Work?

You will have to file a claim once it has been determined a medical necessity to have required extra care, or enter into a facility that offers 24-hour care and assistance. They will assess how much you receive by calculating the policy agreed amount up to the stated limit of coverage.

What Types of Long Term Care Insurance Are Available?

Stand-Alone Comprehensive

Stand-alone comprehensive benefits are the most common policies for long term care. All you do is pay a monthly, semi-annual, or annual premium to have the monetary assistance needed for extended care. Each policy will vary on the specifics that are covered.

LTC or Life

You can create a policy that can be used for long term care, or life insurance. This requires an investment of about $50,000 dollars to start and the money has to remain untouched, unless you need it for long term care, or it is being released to a benefactor after your death.


A way to grow LTD coverage is to place it as an annuity. It creates tax-free premiums, but requires a $50,000 dollar investment. The money has to remain in the annuity, or the long term care coverage ends. Part of the premiums go to pay for the morbidity risk of the LTD.

Disability Combination

You can also create a care insurance policy combined with a disability income plan. The funds can only be used for a disability before age 65, but can turn to LTD coverage beyond that time. Part of the premiums are held to cover future LTD needs.

Benefits of Long Term Care Coverage

Planning for the retirement years means looking at ways to cover the high expenses of possible long term care. Getting the right plans and policies in place early will allow you to worry less about what the future holds.

Contact long term insurance professionals and get the right plan started today!