Long Term Care Insurance or “LTC” insurance, is a special kind of coverage that helps with certain out-of-pocket costs that must be made in the care of an individual requiring prolonged medical treatment. Treatment can include assisted living facility care, stays in a nursing home or any other kind of care facility. This kind of insurance is designed to cover costs not already covered by traditional health insurance, Medicare, or Medicaid. This insurance basically fills in the holes in existing coverage.
Those who are eligible are usually policyholders that have experienced a life changing event and now are in need of intensive personal care for an extended period of time. Some policies allow policyholder dependents or other named individuals to also benefit from this coverage.
When one is eligible for long term insurance, the care provider will interact with your insurance company and help to make the necessary arrangements. Normally, your health insurance, (or Medicare or Medicaid) will pay their expenses first and then the LTC insurance will kick in and pay for any additional costs as agreed to in the policy text. Non-covered costs would have to be paid out-of-pocket to the care facility.
Many companies are beginning to offer LTC insurance to valued employees. Coverage is generally paid for through payroll deduction and perhaps other premium payments as chosen by the covered individual.
LTC insurance helps out with a wide range of things having to do with long term care of a policyholder. Coverage will usually handle the daily living expenses of the person throughout his or her residence at a long term care facility. Many of the medical costs not covered by one’s normal health insurance, items such as room and board, as well as food, can be covered by LTC insurance.
In addition to the obvious benefit of covering costs, LTC insurance gives one the ability to take care of one’s self without becoming dependent upon family members. Having this peace of mind is quite priceless and certainly is a great selling point for good long term care insurance.