Long-Term Care Insurance FAQs

What is long-term care insurance?

Long-term care insurance is a type of insurance designed to cover the cost of long-term care services, which are not generally covered by traditional health insurance or Medicare.

Who needs long-term care insurance?

People who can’t perform basic activities of daily living (ADLs) such as eating, bathing, or dressing might need long-term care insurance. It’s also beneficial for those who want to protect their savings and assets from being depleted by the cost of long-term care.

When should I buy long-term care insurance?

The best time to buy long-term care insurance is before you need it—usually in your 50s or 60s when you are still in good health, as premiums increase with age and declining health.

How much does long-term care insurance cost?

The cost of long-term care insurance varies depending on many factors including your age, health status, and the level of coverage you choose.

What affects the cost of long-term care insurance?

Factors such as your age at the time of purchase, the coverage amount, the waiting period before benefits start, and optional features can affect the cost of long-term care insurance.

What services does long-term care insurance typically cover?

Long-term care insurance typically covers personal and custodial care in a variety of settings such as your home, a community organization, or other facility.

How do I qualify for benefits from my long-term care insurance policy?

You usually qualify for benefits when you cannot perform a certain number of ADLs (activities of daily living) without assistance, or when you suffer from cognitive impairment.

How long does long-term care insurance coverage last?

Coverage duration varies from one policy to another. Some provide coverage for a specific number of years, while others provide coverage for as long as you live.

How does a pre-existing condition affect long-term care insurance?

Insurance companies might impose a waiting period before covering pre-existing conditions, or they may deny coverage altogether. It depends on the condition and the specific insurance company’s rules.

Will Medicare cover my long-term care costs?

Generally, Medicare does not cover long-term care costs. It primarily covers doctor visits, hospital stays, and some post-hospitalization care.

Is long-term care insurance tax-deductible?

Yes, long-term care insurance premiums can be tax-deductible, depending on your age and whether you itemize deductions.

Can I use my long-term care insurance benefits outside the United States?

Some policies do provide coverage outside the U.S., but they could limit the benefits duration or the benefit amount.

What’s a “waiting” or “elimination” period in long-term care insurance?

It’s a period of time during which you are responsible for paying for your own care. The policy benefits begin after this period is over.

How does inflation protection work in long-term care insurance?

Inflation protection increases your benefit amount annually to keep pace with the increasing cost of care.

Can my long-term care insurance premiums increase over time?

Yes, your premiums can increase if the insurance company gets approval from the state insurance commissioner for a rate increase.

What is a hybrid long-term care insurance policy?

Hybrid policies combine long-term care insurance with another type of insurance, typically life insurance. You can use benefits for long-term care, or if not needed, a death benefit would be paid to your beneficiaries.

What happens if I never use my long-term care insurance?

Some policies offer a return of premium feature, but typically, if you never use your benefits, there is no return of premium. The premiums paid are not returned to the policyholder.

Can my long-term care insurance policy be cancelled?

As long as you pay your premiums, your policy usually cannot be cancelled by the insurance company.

Does long-term care insurance cover home modifications?

Some policies do cover home modifications such as installing ramps or grab bars to make your home safer and more accessible.

What is a joint or shared-care long-term care insurance policy?

This is a policy that provides a pool of benefits that can be used by either or both of the insured individuals.

Can I be turned down for long-term care insurance?

Yes, depending on your health, you can be turned down for long-term care insurance.

Does long-term care insurance cover adult day care?

Yes, most long-term care insurance policies do cover adult day care services.

Does long-term care insurance cover hospice care?

Yes, long-term care insurance typically does cover hospice care.

What’s a “Free Look” period in long-term care insurance?

The “Free Look” period is a period during which a new policyholder can change their mind and cancel the policy without penalty.

Are there different types of long-term care insurance?

Yes, there are traditional policies, partnership programs, and hybrid policies linked with life insurance or annuity policies.

Does long-term care insurance cover assisted living facilities?

Yes, most long-term care insurance policies do cover services provided by an assisted living facility.

Does long-term care insurance cover nursing home care?

Yes, most long-term care insurance policies do cover nursing home care.

Does long-term care insurance cover home health care?

Yes, most long-term care insurance policies do cover home health care.