- Many older individuals may feel uncomfortable relying on their children or family members for support, and find that long-term care insurance could help cover the expenses. Without long-term care insurance, the cost of providing these services may quickly deplete the savings of the individual and/or their family.
- Premiums paid on a long-term care insurance product may be eligible for an income tax deduction depending on the age of the covered person. Benefits paid from a long-term care contract are generally excluded from income.
Long Term Care Insurance
Long-term care insurance, an insurance product sold through a licensed insurance agent (one who represents the insurance company) or an insurance broker (one who represents the policyowner) in the United States, helps provide for the cost of long-term care beyond a pre-determined period.
Individuals who require long-term care are generally not sick in the traditional sense, but instead, are old and frail and unable to perform some of the basic activities of daily living such as dressing, bathing, eating, toileting, getting in and out of a bed or chair, and walking.
As an individual ages, there is an increased risk of needing long-term care. Medicare (United States) will not cover the expenses of long-term care, but Medicaid will for those who can not afford to pay.
Long-term care insurance can also help pay expenses for caring an individual who suffers from Alzheimer disease or other forms of dementia.
Other benefits of long-term care insurance:
Long term care insurance protects you and your family should you need extended care during your lifetime. This type of care is expensive and most often the responsibility of the individual and family who are forced to spend through their savings, assets and cash to pay most of the long term care costs.
Long term care insurance helps pay for such things as skilled nursing care, rehabilitation, help with activities of daily living, and care oriented conditions like Alzheimer's. It allows families who want to take care of loved ones at home the ability to do so.