Long-Term Care Insurance

Long-term care insurance (LTC or LTCI) is an insurance product designed to help cover the cost of long-term care beyond a predetermined period. It primarily addresses care that is not typically covered by traditional health insurance, Medicare, or Medicaid.

Individuals who require long-term care often do not have an illness in the traditional sense, but instead are unable to perform essential daily activities, known as activities of daily living (ADLs), which include dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking.

The Benefits of Long-Term Care Insurance

Long-term care insurance typically covers a wide range of services, including home care, assisted living, adult daycare, respite care, hospice care, nursing home, and Alzheimer’s facilities. When home care coverage is purchased, it can often start paying for care from the first day it is needed. The policy can cover services such as visiting or live-in caregivers, companions, housekeepers, therapists, or private-duty nurses, available up to seven days a week, 24 hours a day (up to the policy’s benefit maximum).

Other benefits include:

  • Financial Security : Many individuals prefer not to rely on their children or family members for support, and long-term care insurance can help cover out-of-pocket expenses. Without it, the cost of providing long-term care could quickly deplete the savings of the individual and their family.
  • Tax Benefits : Premiums paid for long-term care insurance may qualify for an income tax deduction. The amount varies depending on the age of the covered individual. In addition, benefits paid from a long-term care policy are generally excluded from income.
  • Business Deductions : Premiums paid by businesses for their employees may be fully deductible, provided they are not included in the employee’s taxable income.

    • While Medicaid provides some long-term care benefits, it is a welfare program that primarily covers services for those with limited resources. Medicaid generally does not cover long-term care in a home setting or for assisted living, even though it does cover nursing home care. Many individuals prefer to receive long-term care in the comfort of their home or in a private room at an assisted living facility.

    If you’d like to learn more about the right long-term care insurance for your needs, reach out to us for personalized assistance.