What is LTC Insurance and Who Is Eligible?
Long Term Care Insurance, usually shortened to “LTC insurance,” is a special type of insurance that covers certain out-of-pocket expenses that have to be made to care for an individual needing prolonged medical treatment. This treatment could include care coming from an assisted living facility, a nursing home, or any other care facility. Most types of this care insurance will cover expenses not already covered by
health insurance, Medicare, or Medicaid. This insurance can fill in the gaps.
Eligible individuals are generally policyholders that have gone through a life changing event and now need to be taken care of for a long period of time. There are some policies that will allow dependents of the policyholder or others named on the policy that benefit from the insurance as well.
How Does It Work?
When you are eligible for the benefits of the long term insurance, the care provider will deal with your insurance company. Usually, your health insurance, Medicare, and Medicaid will cover their expenses first, and your LTC insurance will cover any additional expenses as specified by your policy. Any expenses not covered will have to be paid in cash to the care facility.
Do Employers Offer This Insurance?
Most employers are starting to offer LTC insurance to their employees. These policies are generally paid for while the employee is working through payroll deductions and other premium payments as elected by the policyholder. You can even work with your employer to learn more about your benefits or change benefits as you see fit throughout your career if you’d like.
What Does It All Cover?
LTC insurance covers a wide variety of things revolving around long term care of the policyholder. Policies will generally cover the daily living expenses of the individual throughout their stay at a long term care facility. This includes many of the medical costs that will not be covered by your health insurance, including costs for your room and board, as well as food.
Other Benefits of LTC Insurance
Aside from the general benefits of covering costs, LTC insurance offers you the freedom of taking care of your own long term care expenses without having to depend on family members. Not only are you less dependent on others with this insurance, but you are also saving money with tax deductible premiums as well as excludable benefit payments.