Long Term Care, its Types of Coverage

Long term care is a wide range of services that help meet the medical and nonmedical needs of people with chronic illness or disability who cannot care for themselves for long periods. It involves a level of care that requires the expertise of trained professionals to deal with multiple chronic illnesses often associated with older people.

The need for assistance to long-term care may be due to a terminal condition, disability, illness, infirmity or weakness of old age. Experts estimate that at least 60% of all individuals must continue to support one or more of the areas above during their lifetime. A long-term treatment may only take a couple of weeks or months, or it can persist for years. Everything depends on the causes that need treatment.

Statistics show about nine million Americans over age 65 require long-term care services. By 2020 this number is expected to increase to 12 million. While most people who need long-term care is 65 years of age or older, a person may need long-term care at any age. A study by the U.S. Department Health and Human Services says that people who reach age 65 will probably be a 40 percent chance of entering a nursing home. And, about 10 percent of people entering a nursing home will stay five or more years.

The most common types of long term care coverage are comprehensive long term care policies. This type of policy is designed to cover all the options possible long-term care. And, comprehensive long term health care coverage is either tax qualified or non-tax qualified.

Qualified tax coverage provides benefits tax free, and is the most common type of comprehensive policy on long-term care. To claim benefits under a qualified tax policy long term care, the insured must require the attention of at least 90 days due to physical or cognitive conditions and unable to perform two or more activities of daily life.

Non-tax qualified long term care policy can have tax benefits and tax bills may be severe. To be eligible for certain medical benefits "trigger" must be observed and identified by medical professionals. Non-tax qualified coverage may require a reduced activity in daily life.

LTC’s also include disability income insurance. This provides benefits to offset lost earnings if you are unable to work due to illness, injury, or other disabling event. Such insurance is intended for people bringing in an income.

Distinguish which long term care plan is right for you. Make time to do more research on insurance long term care and see valuable development updates on the recent CLASS Act.