Defining Long-Term Care Insurance

When starting the conversation with clients, you’ll probably need to take a step back and explain what long-term care is.

Long-term care is “a range of services and supports you may need to meet your personal care needs. Most long-term care is not medical care, but rather assistance with the basic personal tasks of everyday life,” also known as Activities of Daily Living (ADLs).

ADLs include bathing, dressing, eating, toileting, continence, and transferring. Bathing and dressing are typically the first two to go.

The most common types of care are nursing, residential, home, and community.

Nursing care (Skilled Nursing Facility) is a facility with around-the-clock trained professionals to care for residents with severe illnesses or injuries.

An assisted living facility (or residential care) is for those who need help with some things but do not need 24-hour care.

Continuing care retirement communities are a mixed campus of nursing and assisted living for an easier transition between the two.

And home care sounds like it is—being able to stay in your home to receive care by a professional aide or other caregiver.

A long-term care insurance policy reimburses the policyowner for long-term care services and support (up to a daily or monthly maximum). The policy covers acute needs as well as custodial needs and can even pay for the coordination of care.

Having an LTCi policy in place is useful for family members wanting to ensure their loved ones will be taken care of when needed.