Facts

• LTC insurance covers the cost of care that individuals may need if they suffer from an illness, disability, disorder or condition which renders them incapable of taking care of their own basic needs without assistance. LTC insurance policies may only cover certain types of care such as skilled nurses, home health aides or rehabilitation services. The policy may also cover licensed facilities such as assisted living facilities, nursing homes, adult day cares or non-licensed care for those receiving at-home care.
  
  

Features

• Some LTC policy features may lower or raise insurance premiums for policyholders. For example, policyholders can decide whether they want an inflation adjustment included in their policy that will help cover rising long-term care costs. If a policyholder chooses to have an inflation adjustment on the policy, he will likely pay a higher premium to have benefits increased by 5 percent each year. Policyholders who do not choose this option will have benefits remain the same but will also pay lower premiums. There is also an elimination period that determines how long you will go before benefits kick in. Policyholders can choose from elimination periods of zero to 90 days, with the longer periods resulting in lower premiums.
  
  

Time Frame

• According to Consumer Reports, the best age for seniors to obtain an LTC policy is at 65; they should seek out a policy earlier than that if they suffer from illnesses or other medical conditions. Seniors should consider their age and their health before applying for LTC insurance because they will need to pass a medical exam to qualify for coverage and a lower premium. Once insured, seniors can choose from policies offering coverage for two years or more.
  
  

Benefits

• Policyholders must meet their insurance company's eligibility requirements to receive benefits. This may include providing the insurance company with proof that they are unable to do basic activities of daily living such as cooking or going to the bathroom by themselves without assistance. Once a claim is approved, the insurance company will pay benefits based on the policy's maximum daily amount.
  
  

Considerations

• Seniors should weigh the benefits and risks associated with paying for this type of coverage, especially when it comes to their personal finances. Seniors should be aware that their insurance premiums may go up, making it difficult to pay for the coverage after retirement,. Some policies do not cover all types of LTC services, and insurance benefits may not be enough to cover all of the expenses related to care.