LTC Policies – What do they cover?

For individuals who are no longer sufficient enough to manage and perform the basic tasks of daily loving, more popularly termed as ADLs, or chronic illnesses such as dementia or Alzheimer’s disease, long term care services are typically provided to serve as a reliable assistance when it is utmost needed.



These LTC services are broken down into LTC policies which layout various terms and services including benefits and coverage limitations that every individual must fully understand to determine which policy are best to acquire. LTC policies cover assisted living, adult day-care and other care in the community, alternate care, and respite care for the caregiver.



Some policies also cover home care services such as skilled or non-skilled nursing care, physical therapy, homemakers, and home health aides provided by state-licensed and/or Medicare-certified home health agencies. But, the availability of this coverage depends on the state and community where you live in. Thus, make sure to inquire at your local health department.



Also, when it comes to policies, you should be aware of the costs and expenses you might face as well. Remember, the cost of LTC varies widely. It is not something which stays stagnant for a long period of time. In fact, the rates and premiums of these policies changes rapidly which in effect makes LTC more of a privilege than a right for most US citizens to baby boomers.



Moreover, the premium you pay depends on many factors including your age, extent of benefits and the time you’re willing to wait until benefits begin. Licensed LTC health insurance agents or financial advisers can help you balance policy features and prices. Make time to visit one nearest your location to make certain you understand everything before reaching a final decision.



LTC policies come in two types, namely, "indemnity" or "expense incurred". An indemnity or "per diem" policy pays up to a fixed benefit amount regardless of what you spend while an expense incurred policy provides a total dollar amount that may be used for different types of LTC services. This usually comes in a daily, weekly, or monthly dollar limit for your covered expenses.



However, take into account that there are no policies that guarantee full coverage of expenses. That’s why it is also significant to check the limitations of these policies – mainly the things they do not cover. All policies contain limitations and exclusions to keep premiums reasonable and affordable. This may differ from policy to policy. Before you buy, make sure you understand exactly what is and is not covered by a particular policy.



To name a few, mental and nervous disorders are not covered. Alcoholism, drug abuse and self-inflicted injuries are not covered as well. Even pre-existing conditions do not apply.



Expand you long term care research and explore your insurance for long term care options. Determine which long term care insurance policy fits you.